ETH Daily TA Cautiously Bullish
ETHUSD Daily cautiously bullish. Recommended ratio: 87% ETH, 13% Cash. *CRITICAL RESISTANCE WATCH (SUNDAY/MONDAY SCARIES). Cryptos are enjoying a weekend rally leading up to anticipated volatility this week with PMI (08/01) and Unemployment (08/05) numbers scheduled to report. Economic outlook aside, risk-on investors continue to creep back into Ethereum prior to the expected launch of the Merge on mainnet 09/12. ETH has a major resistance ahead at $1941 (in addition to 2k psychological resistance) so it would be prudent for traders to be mindful of position size on the first test of it. Key dates this week: July Final S&P Global US Manufacturing PMI estimate at 9:45am EST (08/01); BLS Employment Situation at 830am EST (08/05).* Price is currently forming an Ascending Triangle as it tests $1711 minor resistance for a third consecutive session. Volume is currently Moderate (low) and on track to favor sellers for a second consecutive session, this is only mildly bearish considering the volume has dropped in both sessions which is indicative of profit taking. Parabolic SAR flips bearish at $1373, this margin (25%) is mildly bearish. RSI is currently trending sideways at 67, the next resistance is the 50/50 uptrend line from November 2018 at ~72; the next support is the uptrend line from 06/18/22 at ~60. Stochastic remains bullish for a third consecutive session and is currently trending up at 87 as it breaks above 81 resistance; the next resistance is max top. MACD remains bullish and is currently trending up at 314 as it approaches a retest of the upper trendline of the descending channel from August 2021 at ~136 (just below 155 major resistance). ADX is currently trending up slightly at 31 as Price is pushing higher, this is bullish. If Price is able to breakout above $1711 minor resistance then the next likely target is a retest of $1941 resistance for the first time since 05/30/22; $1941 resistance is a major resistance because it served as support from April 2021-May 2022. However, if Price is rejected here, it will likely find a bit of support at $1550 before potentially retesting $1427 support. Mental Stop Loss: (one close below) $1596.
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