WATCH: Ethereum Gains Momentum Ahead Of The Merge | ETHUSD September 6, 2022

Tony "The Bull" Severino

2 years ago

5 mins read

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In this episode of NewsBTC’s daily technical analysis videos, we are going to look at Ethereum using ETHUSD and ETHBTC ahead of the Merge.

Take a look at the video below:

VIDEO: Ethereum Price Analysis (ETHUSD & ETHBTC): September 6, 2022

Not much has changed in Bitcoin and other cryptocurrencies since last week. However, Ethereum continues to gear up for the upcoming Merge and posted some decent gains over the weekend. Here is a closer look at Ethereum performance ahead of the Merge.

On daily timeframes, ETHUSD closed above the middle-Bollinger Band and should make another run at local highs. A potential bull flag breakout could hint at a larger rally. A bullish crossover of the LMACD also supports momentum carrying Ether prices higher.

Further adding credence to an up-move, ETHUSD is above the Tenkan-sen and is attempting to close above Kumo cloud resistance. Notably, Ether was rejected from the bottom of the cloud before losing support at around $2,500.

Will a bull flag lead Ethereum higher? | Source: ETHUSD on TradingView.com

The Signal From Ether’s Most Powerful Rallies

Ethereum is right up against the middle-Bollinger Band on weekly timeframes. Closing above the middle line, which is a simple moving average set at 20-periods, has led to some of the cryptocurrency’s strongest rallies. For example, in 2017, closing above it led to a 13,000% increase before a bear market started. The idea of a rally is possibly supported by a bullish crossover of the LMACD.

To truly become bullish, Ethereum must reclaim the Ichimoku cloud. However, price has already closed above the Tenkan-sen on the weekly which is a start. Interestingly, Bitcoin is still stuck below this line by comparison, while Ether is well above it.

Making it above the mid-BB could be significant | Source: ETHUSD on TradingView.com

ETHUSD Future Forecast: A Storm Is Coming

Before we move into a more direct comparison of Bitcoin and Ethereum, the rarely used 3-week timeframe could be very telling. There are only five days left in the candle and ETHUSD has to move up from the current level or else it will close through the Ichimoku cloud.

In the past, closing through the cloud led to a large down-move and the final bottom. It is worth noting that closing through the cloud swept support during the last bear market. This time around, support was already swept. Bearish momentum is also weakening on the timeframe according to the LMACD, so a reversal is possible.

The 3-week timeframe warns of danger or reversal | Source: ETHUSD on TradingView.com

The Merge To Lead Strong Outperformance Against Bitcoin

ETHBTC is above the mid-BB which in the past has led to some of the largest rallies, much like the USD trading pair example. Ethereum is also up against the upper Bollinger Band on weekly timeframes versus BTC so a similar push outside of the bands is possible.

Importantly, Ethereum retested the Ichimoku cloud on weekly timeframes and is pushing up against neckline resistance on a five-year long inverse head and shoulders bottom. From the head to the neckline was a 400% move, so the breakout from resistance could lead to enormous overperformance in Ethereum versus Bitcoin.

An inverse head and shoulders could send ETH higher | Source: ETHBTC on TradingView.com

Why A Massive Move Could Be Coming Against BTC

Finally, switching back to the 3-week timeframe used for the USD pair, Ethereum has taken out the cloud after retesting the Kijun-sen and confirming it as support. This also could hint at curved parabolic support forming. This is the first major consolidation after ETHBTC broke out from downtrend resistance, and the LMACD appears ready to cross upward and send Ethereum much higher versus Bitcoin.

Will the Merge be the catalyst crypto bulls are hoping for? Make sure to leave a comment in the video above. Remember to also subscribe to the NewsBTC YouTube channel and follow us on Twitter.

High timeframes suggest there are clear skies ahead for Ether | Source: ETHBTC on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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