Ethereum: Ascending Channel Analysis 1D (Apr. 21)

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X FORCE GLOBAL ANALYSIS:


Ethereum has been showing a slow and steady uptrend, creating higher lows and higher highs on the daily. In this analysis, we look at Ethereum (ETH)'s technicals to determine the bullish and bearish probabilities.

Bullish Evidence

- Prices have been creating a steady higher lows and higher highs on the daily
- The ascending bullish parallel channel remains intact
- We have broken through the 0.236 Fibonacci resistance, and the 0.382 Fib resistance
- The Relative Strength Index (RSI) also shows an ascending trend, with higher lows and higher highs, demonstrating trend strength
- The Moving Average Convergence Divergence (MACD) shows increasing bullish histograms as a sign of momentum to back bullish movement

Bearish Evidence

- However, We have been rejected by the 0.5 Fibonacci resistance
- While the bullish candles appear slow and steady, we have previously seen a huge bearish engulfing candle, demonstrating that bears are in control
- Because we are trading in an ascending channel after a drop, this could be a setup for a bearish flag


What We Believe

We believe that Ethereum is likely to continue its bullish uptrend, given that prices remain within the ascending channel. A break and close below the channel support could confirm the start of a new downtrend.

Trade Safe.