Taking a quick look at Ethereum’s performance, after Bitcoin smashed through the resistance zones this morning vs the US Dollar. Ethereum has been under a lot of bearish pressure vs Bitcoin and I have illustrated the bearish channel that I am watching. A break and consolidation above this channel will be a very good signal for the ETH market, but what to do till then, let us take a look at the chart.
There has been some good buying volume around the 0.0305 btc – 0.0315 btc price zone, and the sellers are stepping in above 0.032 btc to offload their recently purchased bags. Momentum is looking good for the bulls and if they can keep the RSI above 50, there could be a chance to test our short term resistance, and possibly break through it should the momentum continue to build.
Resistance in my opinion is between 0.032 btc – 0.0338 btc, and a breakout and consolidation above this zone will signal a bullish longer term trade setup for me. Until then I expect some trading action in this channel and the higher risk traders will be looking to fill longs and shorts before we go higher, if we go higher.
A break below this channel will signal disaster for ETH on the shorter timeframe, however crytpo is bullish right now and Bitcoin has already rekted those short on leverage, is Ethereum next? Patience while the market gets ready to show us the next move. Safe trades.