ETH/USDT: Daily Breakout Target Analysis 1D (Jul. 27)

Jul 27, 2020

X Force Global Analysis:


If you find our analyses to be helpful, make sure to support us by dropping a ‘like’


In this analysis, we take a look at Ethereum's daily chart, exploring potential zones of interest based on breakout patterns and fibonacci retracement levels.

Analysis

- We can first spot an ascending triangle's breakout pattern in play
- Counting Elliott Waves, we have seen an Elliott Impulse Wave (12345), leading to an ascending triangle pattern
- Within an ascending triangle pattern, we have seen an Elliott Triangle Wave (ABCDE) pattern, leading to a breakout
- While this breakout led to an extremely bullish price movement, and Ethereum broke the 2.618 Fibonacci retracement resistance
- Based on the breakout pattern, we could see a potential rally leading to the 3.618 Fibonacci resistance levels.
- The Relative Strength Index (RSI) is, however, at oversold territories, reaching its previous high level
- The Moving Average Convergence Divergence (MACD) continues to show increasing bullish histograms as a sign of momentum in the bullish trend.


What We Believe

Based on technicals demonstrated on the daily chart, while Ethereum's rally has been extremely rapid, there is still more upside to the 3.618 Fibonacci resistance zones where the breakout pattern could be completed.

Let us know what you think in the comment section below


Trade Safe.