ETH is considered the oil of the crypto industry. Few analysts predict it to be at $10,000 by year-end of 2021. Other forecast it to be at $20,000 + in the coming years.

All financial markets are the same when it comes to chart analysis. Better the buying, the more the potential to ride the wave. Shorting cryptocurrency right now is extremely risky. We will analyze the daily timeframe.

- Market structure: ETH broke the strong resistance of $2900. Before breaking, it was in a range, also an accumulation phase. The orders gathered at the range pushed the liquidity to break the resistance. Now that the resistance is breached, we will look for a retest on the resistance turn support. It is also to note that market is forming HH’s and HL’s now.

- Trendline: The only trendline indication we have on ETH is the descending trendline. This trendline infused the breakout buy and also validated the breakout with candles opening and closing above the trendline.

- Retracement: The 61.8% level of retracement is in confluence with the support level at the price point of $2750. The golden area of retracement is at $2600, which is slightly below the support level. This area can be tapped with a wick of a candle or a fake out.

- EMA's: Both EMA’s are bullish at the moment. Prices broke through the EMA 50 and have not yet retested. The retest appears to be at the support level which already confluences with the 61.8%. At this level, if we get an EMA 50 retest, we will have three confirmations to go long.

- RSI/CCI: Oscillators bounced back after tapping their over-bought regions. Currently, RSI is at 72 and CCI at 100. Both of them are near their over-bought regions, which makes it risky to buy right now. Therefore, we have to wait for the oscillators to neutralize their levels in alignment with the support level with other factors.

Ethereum in an uptrend

Aug 14 2021

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