Altcoins have been strong performers today and the largest cap altcoin, Ethereum, is no different. Ethereum has had around a 6% gain over the last 24 hours and has been outperforming Bitcoin. It has been a particularly bad month for Ethereum’s price and even with today’s increase, the loss for the month is around 5%. The near-term outlook seems positive for Ethereum, with both price action and RSI forming higher lows.
The move up has been on decent volume so let’s see if this upward move can manage to make it over the last lower high in price which was at the $490 point. If it can manage to break through, the daily pattern would be forming higher highs and higher lows which could change the outlook and sentiment for a lot of traders and market participants. It also should be noted that the 50EMA is currently around the $500 mark so price action could meet double resistance from the $490 level and the 50EMA as it approaches this point.
On the hourly, we have a golden cross occurring. This is where the 50EMA crosses the 200EMA to the upside. After significant increases of 4-5% over the course of just a few hours earlier in the day, price action is slowing down, with some traders likely taking profit. A bearish divergence is currently forming on the hourly chart showing buying pressure is dropping so the next significant move we see on the hourly could be to the downside. Longer timeframes take precedence over the short ones so even with the bearish divergence pattern; the outlook remains positive for Ethereum.
- Price performing strong over the past 24 hours but still down about 5% this month.
- Higher lows forming in both price and RSI on the daily chart
- Upward move on the daily with significant volume and key level of $490 should be monitored. Will be a bullish sign if price action can break through this point.
- Price likely to meet double resistance of $490 being a key level along with the 50EMA as it reaches this point
- Bearish divergence occurring on the hourly chart showing buying pressure is falling off somewhat
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Ethereum Price Analysis – Bullish Outlook After Hard Drops this Month was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.