EthereumShort
ETHEREUM SHAKEOUT AND MOVING AVERAGES
Hello crypto enthusiasts!
It is time to look at Ethereum from an intra-day perspective, since a lot of guys are worried- nothing really happens right now. Funding rates are still high. We are not moving until they are cooled off. Too much are still degen long. The market needs to liquidate more positions.
Before I will go further into explaining what I am seeing, we need to make sure that you as a reader understand the power of moving averages.
What is a Moving Average (MA)?
In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. In finance, a MA is an indicator that is commonly used in technical analysis. The reason for calculating the MA is to help smoothing out the price data by creating constantly updated average prices.
By calculating the MA, the impacts of random, short-term fluctuations on the price of an asset over a specified time frame are mitigated.
Technical Analysis:
On today's chart you can see ETH on the 4h time frame. Black candles are considered red and white ones considered green. I have simply used the moving average method, existing of four different types. The 20 day EMA, 50, 100 and the 200d one. The SMA- smoothed moving average is used to identify the longer-term trend, while the EMA- exponential moving average focuses more on potential changes in trend and buying or selling opportunities.
The 6th of march was a good example for a buy signal. In this case, we had a triple crossover. The 20d EMA crossed above the 50, 100 and 200d EMA. Those longs got a very good entry and I think they do not need to worry about some shaky movement, to liquidate high leverage long positions to cool down the funding rate. The resistance at $2023 needs to be broken. The 13th of march was just a lower high. Seems likely that we revisit the 1600 area before making another lower high. As long as we are making higher lows, I am still bullish on the primary trend. Altcoin market cap chart also validates this idea with also making lower highs by forming the cup and handle pattern
Let me know in the comments below what you think about ETH’s next move.
Cheers!
It is time to look at Ethereum from an intra-day perspective, since a lot of guys are worried- nothing really happens right now. Funding rates are still high. We are not moving until they are cooled off. Too much are still degen long. The market needs to liquidate more positions.
Before I will go further into explaining what I am seeing, we need to make sure that you as a reader understand the power of moving averages.
What is a Moving Average (MA)?
In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. In finance, a MA is an indicator that is commonly used in technical analysis. The reason for calculating the MA is to help smoothing out the price data by creating constantly updated average prices.
By calculating the MA, the impacts of random, short-term fluctuations on the price of an asset over a specified time frame are mitigated.
Technical Analysis:
On today's chart you can see ETH on the 4h time frame. Black candles are considered red and white ones considered green. I have simply used the moving average method, existing of four different types. The 20 day EMA, 50, 100 and the 200d one. The SMA- smoothed moving average is used to identify the longer-term trend, while the EMA- exponential moving average focuses more on potential changes in trend and buying or selling opportunities.
The 6th of march was a good example for a buy signal. In this case, we had a triple crossover. The 20d EMA crossed above the 50, 100 and 200d EMA. Those longs got a very good entry and I think they do not need to worry about some shaky movement, to liquidate high leverage long positions to cool down the funding rate. The resistance at $2023 needs to be broken. The 13th of march was just a lower high. Seems likely that we revisit the 1600 area before making another lower high. As long as we are making higher lows, I am still bullish on the primary trend. Altcoin market cap chart also validates this idea with also making lower highs by forming the cup and handle pattern
Let me know in the comments below what you think about ETH’s next move.
Cheers!
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