ETH - Volume Analysis
Updated
The last 9 months for the crpyto market has been a brutal place for the bulls and long term hodlers. Ethereum has seen nearly a 89% drop from the top to the recent bottom of $170.
Looking at price action alone, many would say the Ethereum bear run is far from over. However, when taking volume into account, others could say the bottom may be near.
- The Analysis -
Nearly 8 months went by with crypto spot volume plummeting across the board. However this last month *Ethereum, along with many other assets have seen a 200-250% increase in volume. The *Ethereum volume on the Bitfinex exchange nearly hit an all time high last week.
Looking back the to 2017, these volume levels have only been hit 2 other times. Both of which were local bottoms.
The VPSI indicator, or Dual Volume Price Strength Index, measures the strength index of both the bulls and bears.
This indicator is showing complete seller exhaustion, with the bulls currently attempting to take over. Data like this again only occurred 2 additional times back in 2017.
Taking this volume and price data into account. I believe there is a strong chance that at least a local bottom could be forming here.
If this is indeed a bottom forming, and Ethereum continues to break upwards, I would expect the following targets very possible:
Also take note: The last major leg down, *Ethereum plummeted nearly 75% before a 130% rally up. Since this local high, *Ethereum has seen nearly an 80% drop without any significant movement up. If this is indeed a local bottom, it would support a possible rally to the $400 level
I hope you all found this volume analysis interesting and maybe even a little helpful!
I wish you all the best of luck!
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
Looking at price action alone, many would say the Ethereum bear run is far from over. However, when taking volume into account, others could say the bottom may be near.
- The Analysis -
Nearly 8 months went by with crypto spot volume plummeting across the board. However this last month *Ethereum, along with many other assets have seen a 200-250% increase in volume. The *Ethereum volume on the Bitfinex exchange nearly hit an all time high last week.
Looking back the to 2017, these volume levels have only been hit 2 other times. Both of which were local bottoms.
The VPSI indicator, or Dual Volume Price Strength Index, measures the strength index of both the bulls and bears.
This indicator is showing complete seller exhaustion, with the bulls currently attempting to take over. Data like this again only occurred 2 additional times back in 2017.
Taking this volume and price data into account. I believe there is a strong chance that at least a local bottom could be forming here.
If this is indeed a bottom forming, and Ethereum continues to break upwards, I would expect the following targets very possible:
- 280
- 326
- 404
Also take note: The last major leg down, *Ethereum plummeted nearly 75% before a 130% rally up. Since this local high, *Ethereum has seen nearly an 80% drop without any significant movement up. If this is indeed a local bottom, it would support a possible rally to the $400 level
I hope you all found this volume analysis interesting and maybe even a little helpful!
I wish you all the best of luck!
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
Note
Possible support levels while maintaining the bullish structureNote
Target 1 of the Bullish Bat hitlets see if this continues. additional bullish targets are shown below
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↣ depthhouse.com/
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