Dear Traders,
Today I wanted to dive into the more TA side of Ethereum and just look at some of the technical data that is being shown, of course due to the fact that we have recently heard that ETH 2.0 has released its deposit contract address on December 1st will officially have ETH 2.0 phase 0 live…
The first thing I would like to talk about is, the amount of ETH that is being taken off exchanges in preparation for staking. The chart that is show below is the about of % of the coins supply that is currently being stored on exchanges compared to price action. This is something I created myself just to see how price reacts against supply.
As you can see from the chart above, there is a huge correlation between the amount of ETH supply that is being stored on exchange and price, which is pretty obvious considering that we sellers are looking to move funds they would have to transfer to an exchange. In this case, the amount of supply is nearly at an ATL on exchanges and more and more funds and being removed from exchanges, this decreases the amount of tokens that are currently circulating. Meaning price should respond positivity.
I personally don’t even think this is the majority of people who are currently locking up tokens either, considering the beacon chain does not even go live until December the 1st. The current stakers are likely developers, projects who are running on Ethereum and hardcore supports, this is not the mass of holders on exchanges. Traders and more individual investors will likely wait for the chain to be up and running before locking up tokens, that or just wait for some time to reduce the lockup period. Its very interesting to watch the current analytics of exchange supply but how does the TA look at the moment?
Currently LTF analysis is showing some positive reaction to both the news and fundamental change in the market. I also think that this move is due to the fact that BTC dominance is dropping a little and ETH and ALTS both have some room to catch up with its main pairing. Currently is seems that price action is still fighting to get above $450 which is the next major level of resistance price action is facing, but honestly whats more important right now is looking at buyers instead of sellers. You can clearly see from the current candle wick that ETH has very strong buyers below.
Sponsor - Bybit Exchange
Bybit is committed to creating a fair, transparent, and efficient trading environment, and we offer 24/7 multi-language support as part of our service. Products currently offered on Bybit include BTC/USD, ETH/USD, XRP/USD, EOS/USD, BTC/USDT, ETH/USDT, LTC/USDT, XTZ/USDT, and LINK/USDT perpetual contracts.
Bybit is giving out up to $610 in rewards from Nov. 2 to Dec. 10, 2020. All users who input the voucher code: WIN$500 in their Rewards Hub and make a BTC deposit will receive up to $500 in bonuses and a $20 Coupon. Additionally, all new users can receive up to $90 in Rewards in their Rewards Hub.
HTF chart for ETH/USD is also looking super interesting at the moment, you can see that the current candle for the weekly is looking super strong and even could be looking like a breakout candle, of course all depends on this weekly candle close.
Personally I think ETH/USD has a lot of room to move higher but BTC might have reached its local top for the year… and its super hard for me to be long on one pair and short on the other, that said I would still be heavily positioned long on the market and alts just due to the way ETH is looking at the moment. Especially when we refer back to the data that was first shown, showing the circulating supply decreases for the next 1-2 years, that is a major factor on my mind right now and scarcity does hold value in my opinion. So to clarify, still a buyer at current price and will be along as momentum maintains strong and the trend maintains bullish. AKA ($400 is maintained as support)
Also just incase anyone missed my 2021 HTF chart for Ethereum and my personal predictions for price over the next 12-20 months that chart can be found below, while this is not pure technical analysis because it uses methods of finding price discovery levels, it is something I believe in and some fun for predictions / speculations. The main focus right now is on building HTF spot positions and just buying up any major dips we see over the next 1-2 months. I am very excited to see price expand in 2021.
If you enjoyed this newsletter please signup. Its free and I write newsletters like this a few times a week just to expand on my analysis and charts from twitter and telegram.