ETH Weekly TA Bullish

ETHUSD Weekly bullish. Recommended ratio: 95% ETH, 5% Cash. *Cryptos took a brief dip yesterday after news that Tesla had sold 75% of their Bitcoin holdings (~936m) due to fears of China's Covid lockdowns (Tesla has a Gigafactory in Shanghai) and a need for cashflow. This came as a shock to the crypto community because in 2021 Elon tweeted that "Tesla has diamond hands". Ethereum is now up 86% from the local bottom ($875) on 06/13, and is now down 66% from its ATH ($4800) compared to being down 82% on 06/13. With the Merge currently scheduled for a September launch (~09/12/22), this should continue to drive ETH higher in a "buy the rumor, sell the news" type of long trade. DXY appears to be undergoing a bearish correction, adding bullishness to money markets as Cryptos, Equities, the Euro and Gold are seeing a pick up in buying pressure. The ECB also raised their central bank interest rate for the first time in 11+ years by 50bps, it is now 0% amidst rising inflation; compared to how the Fed has responded to inflation, this rate hike was dainty considering the looming energy crisis due to Nord Stream's reduced capacity going forward for 2022.* Price is currently attempting to break above $1408 resistance with hopes of flipping it to support; this is after defending a crucial support at the uptrend line from June 2020 (which coincided with the 200 MA) at ~$1200. Volume is currently Moderate (high) and on track to favor buyers for a third consecutive session if it can close this week's session in the green, this is bullish! Parabolic SAR flips bullish at ~$3350, this margin is bullish! RSI is currently trending up at 38 with no sign of peak formation as it test 37 resistance. Stochastic remains bullish and is currently trending up at 33 with no signs of peak formation as it tests 27 resistance, the next resistance is at 52. MACD remains bearish and is currently trending up at -500 as it attempts to complete a trough formation, if it can cross above -420 it would be a bullish crossover (and the first time MACD would be bullish since before December 2021). ADX is currently trending sideways at 33 as Price pushes higher, this is neutral at the moment. If Price is able to close above $1408 resistance in this session and next, it will likely test $1944 resistance before the Merge. However, if Price breaks back down below $1408 resistance (still resistance until Price reclaims support), it will likely retest the uptrend line from June 2020 at ~$1200 before potentially heading lower to retest psychological support. Mental Stop Loss: (one close below) $1200.

dailytaguy

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