No One Seems to Be Selling Ethereum
Ethereum had a mini-crash over the weekend along with other cryptos, but there’s been very little follow through to the downside.
The first thing jumping off the ETHUSD chart is the low just below $2,000 on Saturday night. Prices held that level and have been working higher since. That’s a sign that more buyers could be lurking below $2,000 than potential sellers.
The level was also important because it was near the February peak. Is old resistance turning into new support?
Third, notice the higher low on March 25 versus the February 28 trough. That pattern played out to form a bullish ascending triangle. ETHUSD started April with a breakout and is now holding its consolidation zone immediately after.
Finally (and perhaps most important) Ethereum continues to show improving strength against Bitcoin. ETHBTC has been grinding higher all year. Its price action in the last month has been characterized by tight consolidations with few pullbacks. That could reveal a cohort of determined buyers and few sellers.
As the old saying goes, never short a dull market. Right now, the price action in Ethereum is surprisingly boring.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The first thing jumping off the ETHUSD chart is the low just below $2,000 on Saturday night. Prices held that level and have been working higher since. That’s a sign that more buyers could be lurking below $2,000 than potential sellers.
The level was also important because it was near the February peak. Is old resistance turning into new support?
Third, notice the higher low on March 25 versus the February 28 trough. That pattern played out to form a bullish ascending triangle. ETHUSD started April with a breakout and is now holding its consolidation zone immediately after.
Finally (and perhaps most important) Ethereum continues to show improving strength against Bitcoin. ETHBTC has been grinding higher all year. Its price action in the last month has been characterized by tight consolidations with few pullbacks. That could reveal a cohort of determined buyers and few sellers.
As the old saying goes, never short a dull market. Right now, the price action in Ethereum is surprisingly boring.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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