ETH to see bullish activity to 230$ before the bears return!
Updated
Crypto-AST ETH/USD Breakdown - 15/01/2020
Daily chart
- ETH found support at 116$ and is now trading at 165$ just below the EMA 200 resistance at 175$ on the daily. This price level is also a resistance price level now because before it was a supporting price level and as we know, once supports are broken they turn into resistances. We have used MA’s as support in order to support this bull move. It would seem as though we will probably break above this EMA 200 resistance at 175$ due to the mere fact that BTC, which the whole market follows has phenomenal bullish tendency towards the 9400$ and 10200$ level at the minute. This will mean that price should and would rise to the minimum of 200$, which is also a resistance zone. Even more so, I would suspect price would rise to a final destination of 230$ before the bears take back charge and this was a price level, which had kept the price of ETH down below this level since august no matter the level of bullish activity in the market.
- In the long run, following a rejection from 230$, we see price descending back down to 133$ very swiftly with final buy zones in our books for ETH at a mouthwatering 40$ ; you know where you heard it first, while they all scream bull run with every minor bull move!
4 hourly chart
- On the 4 hourly chart, we can see that again the MA’s are being used as support since the 160$ level to keep price up and the EMA 200 being used as support since the 133$ support zone. Now, price is trading at just below the 175$ level at 167$ currently in real time. I would advice that we wait for the 175$ resistance to be broken before longing to 200$ and 230$ respectively - with that in mind, I would advice to place stops for this long around the 155-160$ price level with the latter being the better stop loss giving room for stop hunting. It is important to note that momentum indicators seem kind of fatigued to the overbought zones and thus a good confirmation of bullish over ride would come with a break above 175$ as stated above given the current bitcoin scenario.
1 hourly chart
- On the hourly chart for ETH, we can see that there is somewhat of a bullish divergence on momentum indicators - this is a good sign because it reduces the fatigue on the bigger time frames felt by the bulls and gives us a pretty much guaranteed chance of breaking above the 175$ price level. We are also getting strong bullish candles once we switch to other candlestick settings which indicate the power of the bulls and the bears, with the bulls gaining great momentum. Finally, we can fine-tune our stop loss with it being at just below the 160$ level and just below MA supports ; but note that a tighter stop loss gives a higher chance of stop hunting taking place.
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Daily chart
- ETH found support at 116$ and is now trading at 165$ just below the EMA 200 resistance at 175$ on the daily. This price level is also a resistance price level now because before it was a supporting price level and as we know, once supports are broken they turn into resistances. We have used MA’s as support in order to support this bull move. It would seem as though we will probably break above this EMA 200 resistance at 175$ due to the mere fact that BTC, which the whole market follows has phenomenal bullish tendency towards the 9400$ and 10200$ level at the minute. This will mean that price should and would rise to the minimum of 200$, which is also a resistance zone. Even more so, I would suspect price would rise to a final destination of 230$ before the bears take back charge and this was a price level, which had kept the price of ETH down below this level since august no matter the level of bullish activity in the market.
- In the long run, following a rejection from 230$, we see price descending back down to 133$ very swiftly with final buy zones in our books for ETH at a mouthwatering 40$ ; you know where you heard it first, while they all scream bull run with every minor bull move!
4 hourly chart
- On the 4 hourly chart, we can see that again the MA’s are being used as support since the 160$ level to keep price up and the EMA 200 being used as support since the 133$ support zone. Now, price is trading at just below the 175$ level at 167$ currently in real time. I would advice that we wait for the 175$ resistance to be broken before longing to 200$ and 230$ respectively - with that in mind, I would advice to place stops for this long around the 155-160$ price level with the latter being the better stop loss giving room for stop hunting. It is important to note that momentum indicators seem kind of fatigued to the overbought zones and thus a good confirmation of bullish over ride would come with a break above 175$ as stated above given the current bitcoin scenario.
1 hourly chart
- On the hourly chart for ETH, we can see that there is somewhat of a bullish divergence on momentum indicators - this is a good sign because it reduces the fatigue on the bigger time frames felt by the bulls and gives us a pretty much guaranteed chance of breaking above the 175$ price level. We are also getting strong bullish candles once we switch to other candlestick settings which indicate the power of the bulls and the bears, with the bulls gaining great momentum. Finally, we can fine-tune our stop loss with it being at just below the 160$ level and just below MA supports ; but note that a tighter stop loss gives a higher chance of stop hunting taking place.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
Note
ETH USD UPDATE- As stated in our breakdown, it is proving quite difficult for ETH to break above the 175$ resistance level and we had seen a rejection from this price level.
- I stated that it would be safest to long after a break of the 175$ price level.
- If you had already longed, I would advice for you to exit your long positions and re-enter after a break of this level.
- Why ? Because I see ETH stop hunting orders up until the 154$ mark and I originally announced that our stop loss region following a break of 175$ would be the 152$ price level.
Note
ETH USD UPDATE - On our ETH breakdown we advised that you remain out of longs on ETH until a break above the 175$ price level in line with EMA 200 resistance on the daily chart. On top of this, we also stated in a later update that we should expect bearish price action down to the 154$ in order to create some stop hunting in the market.
- Since this update, we had seen lows on ETH made at 158$ in order to meet MA support, slightly higher than our original thoughts of bearish price action continuing to the 154$ price level.
- Since finding support at 158$, we have gone on to have another attempt at breaking the 175$ resistance level but once again this was nothing more than a failed attempt highlighting more evidence as to why we initially suggested that a break above this zone was pivotal.
- Following a break of 175$ resistance level, we still see bullish activity continuing to 200$ and being exhausted at 230$ before the bears take back charge in the market once again to return price to the 133$ level and finally to the 118$ level - there you have the bigger picture of this price action!
Note
ETH USD UPDATE - On our last ETH/USD update , we stated that it would be fine to go long on ETH after a break of 175$ resistance level. Since then, we have seen price spike to highs of 178$ and thereafter, catching us in somewhat of a stop hunt to the 160$ level with EMA 200 on the hourly chart being used as support at this level. Our stop loss was at 154$ after upgrading it from the 152$ level and thus we should still be in this long position.
- Now, we should see a range forming between the 170-166$ level before an upward break to retest the 175$ level once again.
- For those that still have not gone long on ETH, please ensure that you wait for a clean conformational close above the 175$ level before longing ETH ; as nothing is confirmed unless we see a close above this level to confirm bullish bias. In this instance, we have been caught out in a spike and not a close ; which is a school boy error on our part.
- Our upward targets still remain at 200$ and 230$. But, please reduce both targets by 3$ at the minimum to reduce the chances of our take profits not being hit.
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