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Ethereum Looks Good
This is on the USD chart for the 4H TF.
If you can see above, the price already eclipsed the EMA-50 and it tested it as a resistance as well.
This is still on the 4H TF. Just illustrating what I stated above to give everyone a better idea of what’s going on.
Now, let’s take a look at the next plausible resistance that it’s probably resting against: EMA-100.
So, next test is at that downtrend resistance line (the one that has been created since the beginning of the market downturn earlier in the beginning of June.
Now, I know what you’re thinking
“Hey, if $550–555 is the next potential resistance, why do you think that there is a 20% (approx.) move in the works?
Check This Out:
My RSI is looking healthy!
Pink Line = RSI(14)
Blue Line = EMA(9)[RSI(14)] ; this is the ‘smoothed over’ RSI to give us a clearer view of what’s going on.
Once again, when Pink Line > Blue Line = buy signal. When blue line > pink line = sell signal.
Huh? I Don’t Get What You’re Talking About CryptoMedication
I wrote an article about it, check it out here:
Now, Back to What We Were Talking About
The RSI on Ethereum has been booming on the 4H, and it looks like it’s going to continue to do so.
The Relative Strength Index is telling us that resistance points are not hindering the price movement of Ethereum at this present moment in time.
So, it looks very plausible that it will break through that downtrend resistance that I mentioned above (that white line going diagonally in the chart).
The next point that it needs to test (verifiable point of resistance) = EMA-200.
That’s located at:
Smack dab at the price of $565.
From where we’re at right now ($538), that resistance = +10%.
That’s Nothing to Scoff Over
The larger play here stands at this point as well:
The price of $636, if we’re looking at that major downtrend resistance that’s been in play ever since the ATH of Ethereum (shown below):
That’s from $1370 that occurred in early January
That’s sort of a ‘dream scenario’, but it’s not something that can be ruled out.
The potential gains that would be represented by each of the following scenarios are as follows:
That last picture shows the maximum upside of 20% off of this move that I was referring to before.
Once again, there are a number of other factors at play — but I’ve stated this before in my Ethereum market analysis that the price of Ethereum is vastly underpriced compared to what it should really be.
So, play things safe — use smart portfolio management and always gauge the R/R before making a definitive decision on what you will/won’t do!