ETH in a Tight Range! Up or Down From Here?
We're currently in a very tight range for ETH with the majority of levels being resistance. On the 4h I currently have three moving averages:
Pink - 200 EMA
Blue - 100 EMA
Purple - 50 EMA
As you can see, the purple line (50 EMA) has acted as resistance for ETH since Dec 16th. The thing we have to realize is there's also support for ETH right below it at 1200 (hence the tight range). Looking at the indicators, we can see this:
1. RSI bounced off the signal line and is curving to the upside (bullish)
2. MACD is starting to flatten out (bearish)
3. Above the 50 EMA, we also have horizontal resistance at the 1230 level which coincides with the 100 EMA and the 200 EMA isn't far above that at 1250 (bearish)
With all of this said, my bias unfortunately leans to the downside (4 levels of immediate resistance w/ horizontal and EMAs vs 2 levels of horizontal support). In saying that, ETH is right near support so it's risky taking a short, but you could play your stop right above the 50 EMA at 1225 and set your TP at 1160 for a 4:1 reward to risk ratio. NFA.
If you enjoyed my TA, please send a boost my way and comment below. Thanks :)
Pink - 200 EMA
Blue - 100 EMA
Purple - 50 EMA
As you can see, the purple line (50 EMA) has acted as resistance for ETH since Dec 16th. The thing we have to realize is there's also support for ETH right below it at 1200 (hence the tight range). Looking at the indicators, we can see this:
1. RSI bounced off the signal line and is curving to the upside (bullish)
2. MACD is starting to flatten out (bearish)
3. Above the 50 EMA, we also have horizontal resistance at the 1230 level which coincides with the 100 EMA and the 200 EMA isn't far above that at 1250 (bearish)
With all of this said, my bias unfortunately leans to the downside (4 levels of immediate resistance w/ horizontal and EMAs vs 2 levels of horizontal support). In saying that, ETH is right near support so it's risky taking a short, but you could play your stop right above the 50 EMA at 1225 and set your TP at 1160 for a 4:1 reward to risk ratio. NFA.
If you enjoyed my TA, please send a boost my way and comment below. Thanks :)
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