Ethereum show incredible strength with massive rejection🚀- Ethereum still holds the biggest ecosystem and has running smart contracts for a long time.
This headstart led to a big market dominance compared to its competitors like Cardano , Solana, Cosmos, etc.
- Ethereum still is the first choice after Bitcoin for big investors and remains attractive.
- SEC confirmed that crypto will not be banned and especially Bitcoin and Ethereum will not be banned.
- 5 billion worth of Ethereum burned since August.
Daily chart:
- Price showed a flash crash together with the whole market and a massive rejection that prints the bullish daily candle of Saturday.
Currently we are within a large rising wedge and heading towards the apex where a breakout is expected.
- Volume is still very low which confirms a consolidation phase.
- RSI analysis shows a consolidation as well.
- Moving averages show that we currently are below the 20MA and the 50MA. This is a concern and we have to reevaluate next time.
- Support lines are at 3950$, 2850$, 1750$ and 1350$. All of them have been retested which is fantastic.
- Resistance lines are no more. The breakout out of the rising wedge leads to price discovery .
Expectation:
- We expect that Ethereum finds itself around 5k within the next week.
- Once we start moving up seriously FOMO begins and we can enjoy the ride.
- More and more people get heavily into Bitcoin and start pondering about their next investment. Taking Ethereum as next seems very likely.
- End of the year prediction: We will see a 7k$+ Ethereum before the end of 2021. We reduced the price target from 10k$ to 7k$ due to recent price actions.
Basic rules:
- Never buy the top/ ATH
- Take profit as long as you can (also partial profit is profit)
- Use Stop/loss for leveraged positions
- If you are not experienced, don't leverage in the first place
Enjoy the ride and don't be too greedy.
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Always do your own research and keep in mind that my charts and comments cannot be considered financial advice.
Cheers
ps.
Chart explanation:
Main lines:
- Green lines are tested support lines.
- Orange lines are resistance lines or, if we are above, possible support lines which were not tested yet.
- Cyan line is for volume trendline.
- White lines are Fibonacci retracement levels
Helplines:
- Purple lines are trendlines we take a look at.
- Blue, green, white and pink lines are 200MA, 100MA, 50MA and 20MA.
- Yellow lines are for visual help only.
Specials:
- Boxes represent either entry zone or support zone . Check the description.
- Cameras represent MA crossings. Yellow camera stands for a golden cross while the cyan camera stands for a death cross.
