Ethereum (ETH) is very similar to bitcoin and other top altcoins. Respectively, we are at one of the key price levels and it is clear that the bears are running out of steam. By the way, we also paid attention to some altcoins yesterday’s stream, so if you were not present, look at the record. We’ve talked about a lot this time.
Current situation at 1W BTC / USD
At ETH, we first look at the weekly chart. Ethereum has lost almost 80% since its all-time high level. From some $ 4,900, we fell to the S / R level, which is around $ 1,000. In other words, ethereum even fell below the previous historical maximum from the beginning of 2018. A certain bizarre is also the fact that on the weekly chart we have 11 red candles in a row. This is really extreme. In other words, a situation very similar to that of BTC. Respectively, the market is already extremely oversold.
Otherwise, in the current week, the market has traded the most volumes since the autumn of last year. It can be seen much better at Binance, where we have even the largest volumes since May last year. Although the bears are still on horseback, the volumes are at those current levels. Semi-pathetically, there is a lot of shopping. It’s an effort to catch falls. That is why I see it as a signal announcing that the bearmarket rally is close. Respectively, we are perhaps finally the local market bottom.
In addition, we are very close to 200 weeks moving average. We broke through it, but as I said on yesterday’s stream, it’s not confirmed. To confirm, it is necessary to have a weekly closing price under the “slide”. If the bulls manage to close the price above, it is naturally a strong bull signal that many speculators can catch.
Indicators
Among other things, on a weekly basis RSI the ethereum was not so deep yet. Currently, the weekly values are at 26 points. This is already a extreme extreme and completely demands an upward cleansing.
Current situation at 1D BTC / USD
As for the daily chart, Tuesday’s candle has the form Doji with very decent volumes. Which means that the bears had to make a huge effort, but they still couldn’t push the price lower. They were even pushed back a little. In other words, the bulls began to show initiative. Wednesday’s candle has a form Pin New and it is at all the largest “bull” volume from May 2021. Another show of strength on the part of the bulls. The bears were able to push the price down briefly, but they were immediately pushed back again.
Thursday candles are not much. But it is not a tragedy either. The red candle has a full shape, but the volumes are about half the previous two. On the one hand, the sellers are definitely still there. But visibly weakened. And that’s what we want to see. Without it, the price logically cannot go up.
In conclusion
Of course, we have absolutely no certainty that this bearmarket rally will come now. The fresh consolidation can only tell that the sellers have lost steam. But in the end, it can turn into something we really don’t want. Maybe a bear flag. Or something like that.
But there are already a lot of arguments for reflection, which we discussed one by one in yesterday’s stream. In addition, it makes sense to be more optimistic about the bear market. While in the bullish trend again pessimistic – go against the general burzovní psychology. So hopefully we’ll see.
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ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as educational content on how to approach the market. Before you invest, do your own research and analysis, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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