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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.
Long-Term Outlook
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.
Medium-Term Outlook
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).
Short-Term Outlook
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.
Conclusions:
- 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.
| DISCLAIMER: Investing or trading in digital assets, such as those here, is extremely speculative and carries substantial risk. This analysis should not be considered as investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt. This analysis should not be interpreted as an endorsement or recommendation of a particular asset. |
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