We know that Ethereum (ETHUSD) goes together with Bitcoin (BTCUSD). We are seeing BTC go up and ETH is doing exactly the same... Let's look at the signals here.
For Bitcoin, we looked at bullish divergence on the MACD and RSI as the main signal, you can see it here:
For Ethereum, ETHUSD, the bullish divergence with the MACD is much stronger, you can see it marked with purple lines on this chart.
The divergence is not present on the RSI, but we have the bullish engulfing candlestick pattern, where the candle on the right completely covers that on the left.
We also have really high volume, the biggest volume bar for ETHUSD on the daily timeframe since June 2019.
The signals are out... Ethereum is about to produce a very nice run, according to the signals coming from this chart.
Conditions for change Charts are always changing... Every 24 hours a new candle is printed and everything can change. If ETHUSD losses momentum and starts to move lower, the above signals can become invalid and a new analysis is needed. Right now the chart is extremely bullish, but make sure to always have a plan before jumping into any trade.
Just curious, but is that a valid bullish engulfing candle? I was under the impression that the body of the 2nd candle had to completely cover the body of the 1st candle, not worrying about the tail or wick. It looks like the 2nd candle on this chart does not quite engulf the entire body of the 1st. Would that change how you view ETHUSD at the moment?
AlanSantana
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@bmad316, You are correct, but it doesn't change my view on ETHUSD. My view changes if the last low is taken out.