Hi friends! I hope you're all doing well. Looking at the four hour chart, for Ethereum, we can see that it is in a beautiful, very strong uptrend channel. It's actually trading in a channel that has several parts, so I've used a pitchfork tool, to highlight the rising support and resistance levels. As you can see on the chart, ETH has been riding the 20 EMA (in blue,) higher and higher. It is respecting the 20 EMA quite well, so if we do get a bit of downside here, I would expect a supportive reaction there. I'd like to draw your attention to the MACD (the graph on the bottom of the chart.) As you can see on the left side, the waves were making lower highs (red trendline,) while price on the chart was making higher highs. This is known as a negative divergence, and it typically indicates that underlying momentum isn't supporting the move higher. You can see on the chart, that a selloff occurred shortly after the negative divergence. However, on the right side of the MACD, we can see that momentum (green trendline) is rising with the price of ETH. That is a signal that the underlying momentum is very healthy, and supports the move higher. It is important to note that ETH is getting a bit overextended here, and a correction would be healthy for future gains. The MACD does look like it's trying to cross below the signal line, which would indicate a shift in momentum, but that hasn't happened yet. Also, I've noticed that red volume is starting to pick up, so it's something to watch. For now, it would be wise to keep an eye on the 20 EMA in blue. A break below that, may signal a corrective move for ETH.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-