Monthly Chart
Observations
- Current price is at around 400 which is near to a strong multi-year resistance range of 420-440 which needs to be broken by forming a long green candle to indicate uptrend strength. Fibonacci Retracements levels also confirm the importance of these resistance levels.
- The price is coming off a Double Bottom pattern near the 150 levels which further gives strength to the long-term uptrend continuation.
- Volume trend analysis shows volumes to be on the lower side but should increase as the price nears the 420-440 resistance levels.
- Trend analysis indicates the presence of a long-term bullish trend currently and if the prices break the 420-440 levels, then the next important resistance is at 592 which is confirmed by the white horizontal trendline as well as the Fibonacci Retracement Levels.
Weekly Chart
Observations
- ETH/USDT price is in an uptrend currently & is reaching a strong resistance level of around 420 which it needs to break comfortably in order for the current trend to continue else it could lead to further consolidation around the 420 levels.
- The long-term trend is bullish as denoted by the trendline but there could be some short -term bearishness in the price as can be seen by the formation of a Doji & Spinning Top in the last 2 Daily Candlesticks which indicate confusion in the market. This is supplemented by the fact that price is also near a strong resistance level.
- The RSI value of 70+ currently is in the overbought region which can denote short term bearishness in the price but if the RSI remains 70+ even after breaking the 420 levels, then it can be taken as a bullish signal as RSI can also remain above 70 during strong uptrends.
- The ADX indicator has a steep upward slope and a value of about 32 which is a slightly bullish sign but its value needs to be consistently over 40 to confirm the presence of a strong uptrend.
Daily Chart
Observations
- The current ETH/USDT can be seen consolidating between the 375 & 415 levels.
- The long term trendline denoted by the yellow colour has been decent support to the price & if the price has to break the 420 level then it shouldn’t break the trendline on the downside as it would start acting as a resistance trendline and that would make it harder for the price to move upwards.
- The long-term trend is still quite bullish as indicated by the 50 Day Exponential Moving Average Indicator denoted by the blue line. The current ETH-USDT price is comfortably trending above the 50 Day EMA indicating a strong bullish trend.
- MACD has turned a bit bearish in response to the price consolidating in the short term and it will only turn bullish again when the price breaks the 420 level with decent volumes.
- Current RSI values remain near the overbought region indicating the short-term price trend can turn a bit bearish or the price consolidation can continue for more duration.
Fundamental Analysis
- Data from BitInfoCharts shows the daily profitability for Ethereum miner operators is at $5.8 per 100 mega hashes second (MH/s) of computing power – a level not seen since early May 2018. The increasing profitability is a result of the recent price rise of the ETH cryptocurrency and a surge in transaction fees brought on by increasing levels of decentralized finance (DeFi) activities on Ethereum. This increase in profits complemented by the growth in DeFi projects’ TVL indicates a further increase in ETH prices.
- JPMorgan is set to make a $20 million investment in ConsenSys. The bank will lead a fundraising round of $50 million. The two are also working on merging the bank’s Quorum project into ConsenSys. JP Morgan has already shown a lot of interest in Cryptocurrencies with its JPM coin launched for internal operations.
- Deribit has started listing ether (ETH) options with strikes above $1,000, and some traders are now betting the cryptocurrency will reach that price by year’s end.
- Volumes have been decent and open interest (OI) is over 2,500 contracts already, indicating some traders believe ETH can potentially show a price move of over 180% in five to seven months.
- In total, almost 1,000 developers have contributed a cumulative 28,000 commits to the ETH project in the past year, across 218 Github repos. Most of the commits over the past year have occurred in the Solidity repo, the programming language used to write smart contracts on Ethereum.
Investment Strategy
Long & Mid Term:
- As soon as the price breaks the 420 level, a Long Trade can be initiated around a price of 450 with a mid-term target of around 580 levels & a long term target of around 700. The Stop-Loss for this trade will be around 365.
Short Term:
- The entry point for the short-term trade would be similar to the long term one. After the 420 level breaks, a Long Trade can be initiated around 440 & the short-term target price will be around the 520 level as it should have decent resistance to the ETH/USDT price at that point. The Stop-Loss of this trade would be at 385.
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