Today is the 27th December 2020, In this newsletter, I wanted to focus some technical analysis around Ethereum / USD as over the past few days we have seen some pretty crazy growth and I think it is very important to update some of our high timeframe and low timeframe charts. I know people have a lot of questions right now about PA.
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It’s pretty obvious by now that nearly everyone in the space is aware of the hourly chart and the momentum that we are seeing on ETH / USD right now is pretty insane, it was only two weeks ago and ETH was resting around $550 and people had a hard time believing that it would move higher and eventually catch back up with Bitcoin.
Price moved up over $200 in just this short period of time and people are pretty excited across the board, seems as though momentum is really shifting and dominance is now starting to take a back seat after being so prominent over the past few weeks. It is great to see ETH and ALTS now moving side by side and showing some relief.
LTF momentum still seems pretty strong for ETH right now and nothing much as changed over the past few hours, saw a pullback from $750 which was expected due to the heavy sell pressure that is holding down price. Now price action is at $730 region.
If we do see another retest of $750 in the next 24 hours, then I really would like to see that level flipped into support, this would be insane for PA and easily take us to $800 and maybe above. It seems as though right now most signals seem to be pointing towards continuation to the upside but it’s hard to tell when BTC is just sleeping like this, one small volatile move and the market can spike very high or very low.
The weekly chart is still looking great at the moment as the price has only just started in this next upper region of price action, has a lot more room to grow in terms of upside. The next logical level for resistance from here is around, $805 which is not outlined on the chart above but is a level that you must watch carefully. After that, it’s pretty much plain sailing all the way up to around $920 and beyond.
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Right now our main focus should be on $750 and watching to see if the market maintains this strength because if we see some small weakness in the market then it could be a good time to start scaling out of our position and back into stables to find a better entry price lower for a macro swing position.
The chart that is shown above has been used for the past 3/4 months now and as you can see price has been great so far, even on that wick down to $550 region buyers bought up price action easily. The real question now is, is there enough strength in the market to get us above this weekly or even monthly resistance region that is $750/770 as it has a large number of sellers.
If you are in a leveraged position here then I would be taking profit, I see no reason in risking the profits you have made over the past 5 days just to be able to squeeze more profits out of the market. This is the fastest way to blowing your entire account.
One last quick note, seems as though BTC super LTF seems to have knocked out a few shorts now and hopefully seem to be putting in a small recovery pattern at the moment. While of course we are mainly focused on look for $750 to be taken out as support it is important that we hold $720 as support on the LTF analysis. Currently see no major reason to be short unless you're in XRP, and the market generally is still looking neutral/bullish.