The spectacular rise of the Dow Jones upon opening today has not brought the spark back into the equity markets but also gave a massive push to the cryptos. Bitcoin crossed past the $7,700 mark. Ethereum touched $195.
Ethereum had been moving in a parallel channel for the past few trading session, with no signs of recovery any time soon. The bounceback of Crude oil and today’s rise of the Dow Jones (DJI) made investors pounce on the opportunity.
Technical analysis of ETHUSD
ETHUSD Chart Published on TradingView.com
First, let’s take a look at the hourly chart of ETHUSD as it encaptured the spectacular rise.
- We can see the massive spike in the traded volume. The rising volume shows the investor’s interest in Ethereum.
- The upward crossover of the MACD line is another positive sign. Ethereum investors who bought during its fall previously would be looking to book profits at $195.
It is evident that crypto markets are currently resonating with the move in the equity markets. Bitcoin’s movement was much more bullish than Ethereum, however.
This upside movement of ETHUSD does not change the fact that Ethereum is bearish in the long term.
Long term movement still bearish for ETH
ETHUSD Chart Published on TradingView.com
Here’s the daily chart for ETHUSD. The daily chart shows that even though Ethereum rose significantly today, the long term outlook remains bearish.
The price is on a parallel channel. Even after taking into consideration today’s upside, Ethereum still seems to be moving in the same zone. The break out will most likely make Ethereum fall by around 9%. Thus, it might be prudent for investors not to buy into the Ethereum craze right now.
