Ethereum Enters Accumulation Range

cryptomeeks (53)in #crypto • 6 years ago

As Bitcoin starts to turn around, Ethereum seems to be entering into an accumulation range.

While most people trade crypto to stack dollars, I find it a great opportunity to earn more Bitcoin. If you believe in the future of Bitcoin as a currency, you should want to acquire more of it to spend.

At the end of the day, charts aren't everything. In the past I've spent way too much time staring at charts and over trading. This lead to insomnia, depression, and a lot of lost money.

I was worried too much about the little money I had in the market rather than going out into the world to make more.

I was looking far too close at charts (1 day, 4 hour, 1 hour time frame). When you zoom out, everything becomes more clear, things move more slowly, and you can make rational decisions without feeling like you need to rush into anything (FOMO).

Ethereum Technical Analysis (ETHBTC)

As Bitcoin starts to turn around, Ethereum and others appear to be bottoming. What I like about this play is that Ethereum has been known to run up a bit faster than Bitcoin during a bull cycle. If one was looking to stack more BTC , they can find opportunities similar to this one.

Simple TA here.

Ethereum has obeyed the trendline drawn from it's January '18 highs. Just over a year later, it's broken free from that trendline , established a low, signaled oversold on the RSI , and is now in it's bottoming range IMO .

The upper end of the range holds resistance at around 42,000 Satoshis, while the lower end of the range holds support at 24,000 Satoshis.

We can see an apparent wedge pattern setting up. A break to the upside would be a test on the upper end of the range, and a break down of the wedge would end up being a test of the lower end.

I have some ETH, and am planning to sell into strength if a test at 42,000 satoshis comes.

If ETH heads to 24k, I plan to buy more.

Ethereum/$ Technical Analysis

Similar to the ETHBTC Chart, ETHUSD has broken free of a key trendline that has been suppressing price since it's '18 highs.

Breaking free of this represents a change in trend... but not so fast. This doesn't necessarily mean the bull market for cryptos have begun, but it is definitely time to start considering buying your favorites. You'll have to make that decision for yourself.

We see an oversold condition on the RSI , which shows low investor interest in Ethereum . Keep the RSI in mind if you're the type to buy low and sell high.

We can also see that we have a cross of the 100 and 200 weekly MA. This represents extremely depressed prices and is typical during a mid to late cycle bear market. These moving averages are far removed from the current price and it shows how much upside potential there truly is for ETH. These moving averages will act as heavy resistance in this market.

What we need to keep in mind is the range that ETH is currently in. The upper end of the range is $205 while the lower end is $78. If you are playing Ethereum for dollars, consider selling into resistance at the upper end of this range and buying at the lower end. It's likely that we will bounce around these levels for months on end.

Accumulation ranges are what institutional-minded investors live for.