ETH-USD Remains Stable, Market Deciding on Direction -BTCMANAGER-

 

Volatility has subsided in ether markets over the past few days, with the markets  unsure on the next direction for ETH-USD. After hardly changing over the  past three days, ETH-USD is gyrating around the $11.00 psychological  level. Volumes on the Kraken  exchange have fallen as well. A time of low volatility is the perfect  time to get in on a directional trade before the market decides on the  next move.

The chart below shown the 4-hour price action for  ETH-USD on the Kraken exchange. The price action is above the Ichimoku  cloud suggesting a bullish outlook. The most recent fractal buy and sell  levels are indicated on the chart at $10.80052 and $11.20000. We should  see bullish momentum intensify if ETH-USD manages to break above  $11.20. This would open up a test of the psychological $13.00 handle. On  the other hand, a break below $10.80052 will most likely see ETH-USD  dive below $10.00.

The chart below illustrates that the Ichimoku  cloud is very thin suggesting only weak support is found around the  $10.00 level up until Thursday. The chart also shows that the base (red)  line and conversion (blue) line are starting to converge, possibly  indicating an imminent crossover which would indicate a switch to  bearish momentum once the base line moves above the conversion line

.The  Awesome Oscillator is signalling that momentum is starting to turn  bearish over the short-term, as the oscillator is turning red and  starting to trend down. An exaggerated downward move will be anticipated  if the Awesome Oscillator breaks below the zero threshold.

The  longer-term outlook is illustrated below with the daily price action  for ETH-USD. The market is attempting to break resistance provided by  the base line, currently at $11.1196. A daily close above this level  will provide a bullish signal and see ETH-USD continue to rise over the  long term. Moreover, the Ichimoku cloud looks to be changing color from  red to green and once this is confirmed, this will give further bullish  confirmation.Once ETH-USD manages to close above the base line at  $11.1196, then we should see the market eye resistance provided by the  Ichimoku cloud, that is up to $15.3981 (upper span of Ichimoku cloud).

The  most recent fractal levels are also indicated on the chart. A daily  close above the fractal sell level at $11.60813 should see bullish  momentum dominate over the long term. However, if the base line holds as  resistance and ETH-USD is not able to sustain above $11.1196, then we  should see ETH-USD tend towards fractal support at $7.00.However,  on the daily timeframe, momentum is turning bullish as compared to the  past few days. 

The Awesome Oscillator is trending upward and is green,  suggesting the market is leaning more toward upward momentum. However,  the Awesome Oscillator is still below zero and further bullish  confirmation will be given once the indicator starts to register  positive values.