Home / Ethereum / Rising divergence for Ethereum [ETH] precede the price increase?

Rising divergence for Ethereum [ETH] precede the price increase?

Daily chart of Ethereum – Source: Tradingview.com

Ethereum yesterday recorded an extremely bearish day of price actions along with the rest of the market.

After outperforming since mid-December, Ethereum underperformed other cryptocurrencies during yesterday's crash, causing the third cryptocurrency to collapse in terms of total capitalization.

He recently gained second place from Ripple's RPP, but yesterday's fall brings Ethereum back to third.

The decline meant that Ethereum would fall below a series of key levels.

$ 128 to $ 140 was a key consolidation area during the mid-November declines and many analysts anticipated strong support at $ 140.

However, the price fell below both levels and currently trades around $ 126.

Ethereum hourly chart – Source: Tradingview.com

However, the lower hourly chart of the time frame begins to show the formation of more bullish schemes.

A bullish divergence is forming between price and RSI.

A bullish divergence is a model of trend reversal and occurs when the price is reduced to a minimum despite the lower RSI.

This shows that the price continues to decline even if the selling pressure is decreasing.

Key Takeaways:

  • Ethereum returns to the third position in the capital cap charts of cryptocurrency after underperforming yesterday's price action.
  • Yesterday's price action led Ethereum to fall below two key levels: $ 140 and $ 128.
  • The bullish divergence – a trend reversal model – is currently being formed on an hourly basis.

Latest news about Ethereum:

NOTE: Investing or negotiating digital assets, such as those present here, is extremely speculative and involves considerable risks. This analysis should not be considered an investment advice, use it for information purposes only. The historical performance of the assets discussed is not indicative of future results. Statements, analyzes and information on blokt and associated or associated sites do not necessarily correspond to the opinion of blokt. This analysis should not be interpreted as advice for purchase, sale or storage and should not be taken as approval or recommendation of a particular asset.




Shutterstock foreground image.

[blokt] is a leading independent blockchain news source that maintains the highest professional and ethical journalistic standards. Journalists are required to meet our editorial policies and guidelines.

Source link