Yesterday, we elaborated a bullish outlook for Ethereum (ETH), with multiple positive signs on MTF and HTF charts. Today, ETH is still holding within a MTF bull flag, although the signs are changing somewhat to a slightly less bullish picture on LTF charts.
Starting on the daily ETH/Bitcoin, we see that Ethereum is selling off to the bottom of the blue support band. In doing so, it’s testing the 21 and 55 EMAs, but holding so far.
The histogram here looks a bit scary, taking a sharp turn down instead of what could have been a stabilizing flat or arch.
The RSI trendline, pictured below, is also looking a bit scary. This line is breaking at time of writing, although the trading day is just over half over and there is still time for buyers to step in and hold this.
On the ETH/Dollar daily we see a slightly rosier picture, although here too the signs are mixed. Price has continued to rise within what looks like a bull flag, positioned just above the very critical $160 mark. This is a result of Bitcoin’s LTF uptrend in the past couple of days, which is inflating ETH’s price even as ETH/Bitcoin falls.
We see a bullish histogram arch to the upside, here. But we also see the chance for a clear bearish divergence on the RSI, if price fails to break out of the bull flag channel.
Finally, returning to ETH/Bitcoin on the 4-hour chart, we must acknowledge that bullish HTF charts aside, Ethereum looks a little precarious here. This is because the important support/inflection zone surrounding ₿0.0188 is being retested for the third (major) time in the last couple of weeks; and always with a falling RSI strength which is hard to see as a hidden bullish divergence.
What’s more, the 55 EMA has been lost here, which suggests that Ethereum may retrace down toward ₿0.0185 – which is out of the larger support zone shown on the daily chart.
The market has been on fire in the last couple of weeks, because of Bitcoin’s powerful rally. If Bitcoin continues to do well, it will likely inflate Ethereum such that the altcoin at least stays above the critical $160 irrespective of what happens on ETH/BTC. We may be seeing a return to the inverse relationship between ETH and BTC.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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