2019-12-07 2018-01-31 Ethereum is in tip-top shape! 31.01.2018 Mikhail Hypov 2019-12-072018-01-31

Attention! In this post the following types of analysis are applied: wave, indicator, trend, Fibonacci levels and trading volume.

Dear friends,

After a short break, I’m coming back to you.

It’s time for my weekly forecast for Ethereum.

I will traditionally start with ETHUSD daily chart

As we see, despite a slight panic in the market and sales, Ethereum is feels rather good and shows its strength.

MACD indicator is slightly ahead the price move, it shows a slight drawdown. The latest signal at the intersection of its moving averages indicates selling.

However, RSI shows bullish market trend, which means there many buyers at these levels.

Chaikin oscillator (I will describe it in detail in one of my next training posts), on the whole, is now on the sideline and doesn’t give strong, clear signals to sell or to buy.

It is also clearly seen in the chart that the orange EMA (31) is a quite strong support level, and the ticker won’t consolidate below 1000USD for a long time.

In the chart above, I simultaneously applied trend analysis, Fibonacci levels and fractal analysis, so, it may look overloaded.

However, all three types of analysis are closely related, they perfectly complement each other in my trading strategy.

The first, we can notice in the chart, is that the ticker is moving in the bullish trend and now is near the lower channel border.

The yellow Fibonacci arc shows strength, it is strong resistance from above.

From below, two Fibo arcs are the strong support. On is of the weekly timeframe (thick one), another is of the daily chart (thin one)

According to fractal analysis, we see Trident element forming. It is likely to finish below 905 USD, the point, where the element started.

After these levels are tested, the next compulsory fractal element, Impulse, should start forming. Its move is 90% likely to reach 1.618 of Origin length at the level of 1400 USD.

Everything seems to be clear after this analysis.

To prove the forecast, let’s check it in the chart with Ichimoku indicator.

As we see, the trend projection fits the indicator move.

Now, the ticker in 4-hour timeframe has tested the lower cloud border, and after a slight consolidation, it is likely to leave it.

In the daily chart we see the strong support from the lines of Ichimoku cloud. Besides, the indicator itself is in bullish state, where Tenkan (blue line) rebounded from Kijun (dark-red line)

Here, our suggestion is also proved by the indicator. After the rebound from the cloud, we may expect the upper border retest. Only after the retest, the long-anticipated upward incentive should be expected.​

To think my analysis complete, let’s study the trading volume.

Horizontal volume indicates strong growth near the levels of 1 000 – 1 100 USD, that means high supply for Ethereum under these conditions.

Vertical volume also indicates getting the price equilibrium, the rebound from which is likely to reach the level 1 160 USD very soon.

What’s the result...

As a result, we are going to see a strong bullish trend for Ethereum, in the cryptocurrency market where all the other alts are crashing.

As we see in the chart, Ethereum is moving quite fast against Bitcoin, providing all the chances for the top of 0.15 BTC retest.

The obvious recommendation is buying. Buying both related to BTC and in pair with USD.

The level of 900 USD breakout would mean the trend reversal and the fractal model change, so, I recommend placing stops below this level.

A good zone to buy is in the range of 900 USD-1000 USD

The first target for the next seven days is 1 400 – 1 500 USD that is to follow consolidation at level 1 150 USD.

I have already added the coins to the fund, and in the next round I am going to increase my position for Ethereum.

I wish you good luck and good profits!

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Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

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