ETH holds bullish structure and could create new ATH in the near future
The bullish structure of Ethereum (ETH) remains intact, suggesting that the token could continue to rise in the short term.
ETH is still bullish on the weekly timeframe despite the sharp decline on Dec 4th. The main reason for this is that the price made a long wick down (green symbol) and moved back above the $ 4,000 zone.
This is an important area as it previously acted as resistance at all time highs and now appears to have turned into support.
The price movement thus provides a bullish picture. The next resistance is at $ 6,026 created by the external fib retracement resistance at 1.61.
Both the RSI and the MACD produce a bearish divergence (red line). These are signs of weakness and often herald a downward trend reversal.
However, the bearish divergence does not appear in either the MACD signal line or the two most recent highs of the RSI (green line).
Hence, the weekly timeframe offers a mixed outlook.
Weekly ETH / USDT Chart | Source: TradingView
Short term movement
The daily chart shows that ETH bounced off a rising support line on December 4th (green symbol). The crack has created a very long lower wick, which is a sign of buying pressure.
Similar to the weekly timeframe, however, the technical indicators are also mixed in the daily timeframe.
The MACD, formed by the short and long-term moving averages (MA), is falling. However, it is still in positive territory. This means that while the short-term MA is slowing down, it is still faster than the long-term. Additionally, some potential bullish divergences are developing which is a strong sign that the trend is continuing.
The RSI, a momentum indicator, is located just off line 50. This is a sign of a neutral trend as movements above / below this line are considered to be signs of an upward / downward trend.
As a result, while the technical indicators are giving mixed signals, they are sloping slightly upward and price action is bullish as well.
ETH / USDT Daily Chart | Source: TradingView
ETH / BTC
Trader @Thebull_crypto has outlined an ETH / BTC chart indicating the pair is about to explode.
Since the tweet, ETH / BTC has broken out above the triangle and hit a high of ₿0.087. This is a new high for the year.
Due to the presence of a symmetrical triangle, it is likely that ETH has completed the fourth wave of a bullish pulse.
The most likely target for the top of the current uptrend is 0.097. It was found using the external fib retracement level of 1.61 on wave four (black) and length 0.618 on waves 1-3 (white).
ETH / BTC daily chart | Source: TradingView
You can see the ETH price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.