Chartpunk Ethereum Brief #1
Ethereum is the mostly used smart contract platform out there, utilizing its decentralized, open source blockchain. The project has launched in 2015 and is today the second biggest platform by market capitalization. In this brief I will provide you with periodic technical analysis updates on Ether, the native cryptocurrency of the Ethereum blockchain.
The high time frame market structure of Ether is in an uptrend. The price is making higher highs and higher lows, and it has just bounced off the upwards trendline commenced on July 20. Trendline support is currently at 4000 which is also the level of a prior swing high, and the level of the AVWAP of September 29 push. The Stochastic RSI is crossing up from oversold territory, providing momentum for the bulls. 4500 and then 4800 are my next bullish targets, and I expect ETH to hold the support at around 4000.
The low time frame chart is currently bearish, but the bulls are showing some strength. The November 15 downwards trendline has been tackled, along with the November 15 AVWAP level (currently at 4245). To regain bullish momentum on the LTF chart, confident price action is needed above the 4345 prior swing high and the 4410 AVWAP level of the November 10 pullback from ATH.
The HTF Predator chart is neutral. The indicator is slightly bearish, but the price is above the ascending 20-period moving average.
The 1-day Ethereum Predator chart is bearish. Indicator is bearish, and the price action is under the 20-period moving average.
The LTF Predator chart is bearish, but is showing some strength. Indicator has just flipped bullish, but the price is still under the descending 20-period moving average.
Ethereum is in a bullish market structure on the high time frame charts, but in the short term the bears are controlling the price action. Confident price action above 4500 could bring ETH back to the ATH zone. On the south the 4000 level should serve as ultimate support for long term holders.
Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook, Twitter, Telegram or Reddit!
What is trend trading?
Trend trading is a market strategy that is reasonably different from swing trading or day-trading. A market “trend” is a tendency of a financial market price to move in a particular direction over time. Swing traders and day-traders are usually trying to pinpoint low-term market tops and bottoms, and take aggressive positions expecting to profit from a swift change of market direction. Trend traders are looking for consolidated and strong directions on a given market, and are trying to ride the trend for as long as possible. These traders normally enter in the market after the trend “properly” establishes itself. My core strategy in trend trading is to look for a market setup where the high time frame chart is indicating a solid trend, and is supported properly by the low timeframe charts.
What is the indicator coloring my chart candles?
I am using the Predator indicator from Decentrader, that is coloring my candles green-red-turquoise-orange, and is providing me basic information on the trend. I am also using the 20-period moving average and Fibonacci levels for the identification of supports and resistances.
Thanks for your clap :)
Did you know each Medium user can clap an article up to 50 times a day for free? If you want to show your support for my work, please consider clapping this article all 50 times! It helps a lot, and motivates me to write more!
Join the discussion!
My goal with this article to share a unique perspective on certain topics. I’d love to hear your thoughts or questions, so feel free to comment them below. Have a great day everyone!
The present article is a free material, for entertainment and educational purposes. Nothing in this post shall be considered as financial advice, you shall never make any financial decisions or financial investments based on a singly source of information and without doing your own research.