A look at the Weekly chart for Ethereum in the logarithmic form shows that fell to the first mini-support area at $ 80 then quickly rallied to meet resistance at $ 160- $ 180.
The candle for the week of December 16-22 is the largest bullish candle of the year and is accompanied by large volume as well (yellow candle).
What is going to happen next?
Let's take a closer look and find out.
RSI fell below for the first time in years.
Furthermore, the MACD made a bullish cross and is heading upward. There is also some bullish divergence developing in the MACD.
On the other hand, the price is moving from the 7 period moving average, which corresponds to the resistance area at $ 160- $ 180.
A look at the bullish divergence in both the RSI and the Chaikin Oscillator.
However, the MACD is losing steam and moving back below.
Inverted hammer, which is a bearish reversal candle (yellow arrow).
A look at the 6-hour chart gives us possible areas of support.
The RSI became oversold prior to the reversal, but there was no bearish divergence.
The first area of short-term support is formed by the 0.618 fib retracement line and previous support at $ 106-114.
- The price fell to the first support area at $ 80.
- Significant bullish divergence in a Daily timeframe.
- Short-term support area is at $ 106-114.
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