Ethereum has surged higher against Bitcoin following the wedge break we posted yesterday. ETHBTC traded as high as .122 in early Asia, before finishing the day and week at .1165; up 17.5% on the day, 20.2% for the week, 153.4% so far in Q2 and a whopping 1297% year to date.
Break to new record highs opens up the path to the 0.133three - .14 zone where we have a bunch of interesting measured levels: 0.133three is the point where this latest leg is equal to the last two legs up (see chart), .1398 is the point where the rally from the May lows is double the Initial December - March rally and .1405 is the 200% extension of the recent wedge correction.
We've said this twice already, but it warrants reiteration: we are charting the uncharted here and anything is possible; we could top before that zone, in that zone or shoot straight through. Having said that, we think a repeat of the temporary top --> consolidation --> continuation scenario is most likely. As such, we'll close most of our margin longs at .133three and prepare to re-enter lower. The great thing about crypto is when you go flat on margin you still have "physical" exposure to extremely volatile assets!
Initial support is the former resistance zone stretching from .1058 to .113, which is currently being re-tested now. Though the hourly chart is looking a little toppy, this is textbook breakout stuff and nothing to worry about at this point in time. Below that initial zone we have another former resistance zone between .968 and key psychological .1, this was already re-tested and is marked by yesterday's low. Bunch of support below there too and .81 remains key for us longer term.
please give a textbook explanation then too. Mining costs of ETH are about $15.....
MFXSCharts
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@fineregex Sorry not sure what you're trying to say. This is a technical analysis piece, we're not discussing the costs/benefits of mining. Fundamentally, ETH is rallying due to interest from sovereigns and investor banks, cheaper and quicker transactions, and especially, lots of blockchain startups choosing ETH as platform for capital raising via ICO tokens.
fineregex
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@MFXSCharts, then how come it mostly rises on pump weekends? I was asking for you to explain the technical analysis completely, like a textbook.. thanks!:)
MFXSCharts
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@fineregex Hey buddy, sorry not sure what you're saying regarding mining mining cost/weekends, but agree that pair has been showing a tendency to rally hard on Sundays. Re: the analysis - is there any specific part you're struggling with? or you want me to break the whole thing down in detail?
Feel free to send me a contact from the website meanfxspreads.com and I can go through it with you over email.