In this episode of NewsBTC’s daily technical analysis videos, we examine the price action in Ethereum following the Merge upgrade in both the ETHUSD and ETHBTC trading pairs.
Take a look at the video below:
In this episode of NewsBTC’s daily technical analysis videos, we examine the price action in Ethereum following the Merge upgrade in both the ETHUSD and ETHBTC trading pairs.
Take a look at the video below:
Overnight last night, the Ethereum Merge upgrade occurred. As many expected, it turned out to be a sell-the-news event for the second-ranked cryptocurrency and has fallen by more than 10% intraday on the USD pair.
On daily timeframes, things continue to look bad for Ethereum and other top crypto assets. The stock market is also in danger, adding stress to the entire situation.
ETHUSD on daily timeframes could be forming a head and shoulders top, just as LMACD crosses bearish. More downside could be necessary where the Relative Strength Index would hopefully find support at a lower trend line.
Ethereum sold off sharply after The Merge update was completed | Source: ETHUSD on TradingView.com
Turning on the Ichimoku gives Ether bulls at least some hope of hanging onto recent gains. Finding support in the Ichimoku cloud could lead to renewed energy and a retest of highs. The Ichomuku on Ethereum weekly charts also is trying to find support above the Tenkan-sen. Slightly above the Tenkan-sen is an even more important line to hold: the middle Bollinger Band.
Finding support above the middle Bollinger Band has in the past led to some of the altcoin’s strongest bull trends.
ETHUSD attempts to hold above the middle Bollinger Bands on weekly timeframes | Source: ETHUSD on TradingView.com
Related Reading: WATCH: Bitcoin Brutalized After August CPI Data Release | BTCUSD September 13, 2022
The downside in Ethereum could be due to ongoing bearish macro conditions and strength in the dollar, but Ether even took a dive on the BTC trading pair.
Although the ETHUSD pair is hoping to find support at the bottom of the Ichimoku cloud, the BTC pair is trying to establish support above the cloud both on daily and weekly timeframes. On the weekly, the bottom of the cloud was already tested and held, which is a bullish sign. However, the downtrend resistance line appears to have struck again and sent Ether tumbling against Bitcoin.
Despite the bearish signals on the ETHBTC pair, the video’s conclusion provides a longer-term bullish outlook you have to see for the full picture.
Was downtrend resistance able to stop Ethereum once again? | Source: ETHBTC on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
Tony is the “always-on” Editorial Director and Head of Research at NewsBTC, leading a talented team of writers and editors across several different global time zones. Tony is also the founder of CoinChartist.io – an educational website focused on crypto trading. Partners include Elliott Wave International, TradingView, and more. Tony’s background includes an extensive, award-winning media production career and over fifteen years of publishing operations and management. In the past, Tony has founded several media websites and his content has been read billions of times. Past clients include the BBC, Fidelity, and many others. Tony "The Bull" is a level 3 CMT student (passed level 1 & 2), technical analyst, Bitcoin supporter, and avid speculator. He owns a python named Satoshi. Tony longs for the day when money is separated from the state. Tony is deeply fascinated by core market principles such as Elliott Wave Theory as they tie into mathematics like Fibonacci ratios. Market timing though DeMark indicators, Ichimoku, Gann tools, or Hurst Cycle Theory are also of key interest. Tony provides completely original content driven by exclusive, independent research. For more insights and education from Tony, check out his free TonyTradesBTC Telegram channel. Follow @TonyTheBullBTC on Twitter. You can also follow @CoinChartist_io on Twitter and subscribe on YouTube.
NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.
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© 2023 NewsBTC. All Rights Reserved.