Huge News!!! Ethereum Is Breaking Out | A New Era Of Ethereum Bull Run Is Beginning

Huge News!!! Ethereum Is Breaking Out | A New Era Of Ethereum Bull Run Is Beginning

By moon333 | moon333 | 29 Jul 2020


Hi, friends hope you are well and welcome to the new update on Ethereum coin. As we have already seen that on the long-term weekly chart the Ethereum was moving in a descending triangle and now finally the price action has crossed up the resistance of this triangle. The current weekly candlestick was started on 27 July. Once the candlestick will be completely closed above this resistance then we will be confirmed that finally, the price action has broken out the resistance successfully.

And if we watch the different indicators then Moving average convergence divergence (MACD) indicator was turning bearish but now it is turned strong bullish. The stochastic gave the bear cross after entering the overbought zone and finally, we also have received a bullish signal by the stochastic as well. In the meanwhile by the momentum indicator was ignoring the bearish signals of MACD and stochastic and it was continuously bullish. Finally, the stochastic and MACD followed the bullish signals of momentum and again turned bullish.

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The resistance of Channel has been broken out:

On the daily chart, the priceline of Ethereum was moving in an up channel and finally, it has successfully broken out the resistance of the channel. I've also placed the moon phases indicator on this chart and can be easily noticed that the new full moon has appeared at high altitude above the resistance. That was a clear indication that the price action can move up to this level. The new dark moon was appeared below the support but it was higher than the previous dark moon that was another bullish indication.

If we watch the MACD indicator then it was strong bullish but now it is turning bearish. The stochastic is also giving bear cross. But the momentum is still bullish so we can expect that now the price action might re-test the previous resistance of the channel as support and from there it will start the next rally.

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A strong resistance block:

If we take a look at the 4-day chart then different support and resistance levels can be easily seen. In the month of March 2020, the price action has the support at $115 and from there it started the bullish move and broke out the next resistance of $150. Then price action broke out the $225 resistance and re-tested the previous resistance as support. Now price action is breaking out the $280 resistance and a strong resistance block that starts from $310 and ends at $325. This is a very strong resistance block that is not broken out since September 2018. Once the price action will be able to break out this resistance block then we will have the next resistance at $310.

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The SMAs have formed opened alligator mouth:

If we watch the different simple moving averages on the daily chart with the time period of 25 50 100 and 200. Then it can be easily observed that the price action was re-testing the 25 and 50 simple moving averages as support. And after a successful re-test, it has started the next bullish rally. In the meanwhile, the 25 simple moving average was and moving sideways with 50 simple moving average and crossed 50SMA little bit down. Now it is also moving up and now a complete opened alligator mouth is formed by the simple moving averages because we have the smallest time period moving average 25 above all then we have 50 then 100 and then 200 below all other SMAs. Now the simple moving averages can lift the priceline of Ethereum in a parabolic way.

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The bearish cloud is broken out:

If we again switch to the long term weekly chart and place the Ichimoku cloud. Then we can see that the lagging span of the Ichimoku cloud has crossed up to priceline and the cloud as well. We have received a powerful bull cross by the conversion and the baseline just below the price action of Ethereum. Now the candlestick has crossed up the bearish cloud as well. Once we will have a complete closing of this candlestick above the Ichimoku bearish cloud then we will be confirmed that the price line of Ethereum has broken out this strong resistance of cloud successfully. We can also observe that the Ichimoku cloud has also turned bullish. After this big breakout, a new era of the bull run will be started that can continue for years. Because before this breakout we have already seen that this cloud was working as a strong resistance and once this resistance will be broken out then it will be working as strong support.

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Conclusion:

Even though all signals and patterns are bullish but there is also a possibility that while re-testing the previous resistance levels as support the price action can move down in case the re-testing will be failed. If it would be happened then the price action can re-enter the channel that was formed on daily chart. Therefore we should use the support of the previous channel as stop loss.

 

Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.

 

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moon333
moon333

Hi, My name is Atif Akbar and I am trading charts author of all kind of assets


moon333
moon333

Hi my name is Atif Akbar and I am one of the top 3 authors of cryptocurrency trading charts as per tradingveiw I publish there with my username moon333 to verify you can visit: https://www.tradingview.com/markets/cryptocurrencies/ideas/ I also publish the charts of different other assets like forex, commodities, CFDs Stocks e.t.c. Here you will find perfect predictions on different trading assets.

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