A look at the Weekly chart for ETH/USD in logarithmic form shows that price has bounced back after finding support in the minor support area near $80.
The price is currently slightly below the minor resistance area at $160 and facing very close resistance from the 50-period MA.
It has not moved above the 50-period MA since March 2018. It is also below the negative Ichimoku cloud.
As for the indicators, the MACD is moving upward after developing bullish divergence but is not positive yet. The RSI is at 38.
The candles for the past three weeks have been bullish.
A look at the 3-day chart shows that price has finally moved past the 21-period MA and is now facing resistance from the 50-period MA and the edge of the Ichimoku cloud.
The 21 and 50-period MAs are very close to making a bullish cross.
Furthermore, the MACD has rejected a bearish cross and is almost positive.
A look at the Daily chart shows that price has moved past the 21 and 50-period MA (almost have made a bullish cross) and the positive Ichimoku cloud and is heading for the resistance area near $170.
The MACD is well into positive territory and moving upward with strength.
The RSI is overbought but there is no bearish divergence yet.
Price has slowed down a little after creating two bullish engulfing candles.
Short-Term Outlook and Price Prediction
A look at the 6-hour chart shows that price broke out of the descending channel it was trading in on February 10th.
The breakout occurred with very significant volume.
Now price is possible following an ascending support line (dashed green) which has only been validated once.
The first minor support area is found near $125.
The RSI is in overbought territory but there is no divergence yet.
The MACD is very close to making a bearish cross and has lost all of its power.
I believe that after a small retracement to the support line, the price will test the resistance at $160 later this week.
The creation of bearish divergence will be instrumental in telling us if there will be a breakout above it.
- Price bounced after retracing to the minor support area near $80.
- Price has moved above the Daily Ichimoku cloud.
- Price has broken out from the descending channel it was trading in on significant volume.
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