Hello great minds,
It is a great opportunity to come before you all today to share my technical analysis on eth against usdt.
I believe you are all doing perfectly well and are enjoying your activities in the community as you actively promote steemit across various social media platform.
Ethereum is a very big cryptocurrency in the cryptospace and we are well aware of this.
Ethereum happens to be the second most biggest and popular cryptocurrency in the cryptospace.
After Bitcoin which is the driver of all other tokens, ethereum is known to be the next most valuable token, and I am here to share my analysis to it.
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
I begin my technical analysis from the higher timeframe, then I descend to the lower timeframe
On the higher timeframe, ideally the monthly timeframe, I seek to determine market trend
The monthly timeframe helps to eliminate market noise from the market and also compress the market to one screen.
And from this, it becomes very easy for the market trend to be predicted.
The screenshot above is that of the pair ethusdt on the monthly timeframe.
And as seen above, there are lesser candles on this timeframe and this is as a result of the time it takes for one of this candles to be formed.
On the monthly timeframe, it takes the time period of 1month for each candle to be formed.
And also, it is easy for the overall trend of the market to be detected on this timeframe, as we can see that the market is being bullish.
I then continued my analysis by moving to the weekly timeframe, and on this timeframe I could see the market more clearly.
Looking carefully at the market, I was able to spot a key level and this level is functioning as a resistance level to the market.
This level can be said to be a valid level as it has been tested and respected severally by the market, and it is expected for the market to be rejected whenever it trades towards this level.
And getting to the daily timeframe, I could see the market more clearly, I could see more candles on this timeframe than on the weekly timeframe, as each candle on this timeframe is being formed after the trading period of 24hrs.
And looking carefully, I noticed that the most recent bearish move on this timeframe was as a result of the rejection from this resistance level.
And I was able to spot another level, and this level will be functioning as a support level to the market, and it can be said to be a valid support level as it has prevented the market from falling further severally.
On the 4hr timeframe, I could see how aggressive the sellers are on the market as they are driving the market downwards to this support level.
This support level is believed to be a strong support level, and I expect to see a bullish rejection when the market trades towards it.
With my analysis, the market has given me a bullish bias but before it happens, I expect it to be as a result of rejection from this support level, and as such, I decided to move to the 2hr timeframe in search of entry into the market.
Getting to the 2hr timeframe, I could see a noisy market, I could see the presence of buyers and sellers as they struggle to drive the market to their preferred direction.
And while I decide to wait for the market to retrace to this support level, I decided to search for a trading confluence using the relative strength index indicator.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
The relative strength index indicator is an indicator that helps to identify overbought and oversold market.
When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.
An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.
I then applied the rsi to the monthly timeframe, and on this timeframe I noticed that the market is being overbought.
An overbought market can be detected when the rsi crosses above its 80% line, and this can be an indication that the market is about to be sold.
An oversold market signals a bearish trend reversal, that is, a weakness of the bulls and strength of the bears.
On the daily timeframe, I noticed that the market is being oversold, and an oversold market is one that signals a bullish trend reversal of the market.
An oversold market is one that shows the weakness of the bears and the strength of the bulls in the market.
With this, I decided to check on the 2hr timeframe in search of entry into the market.
And on the 2hr timeframe, I noticed that the rsi has crossed below its 20% line, and this is an indication that the market is being oversold.
An oversold market is one, as I explained, that signals a bulllish trend reversal of the market.
And as such, I decided to place my entry on the closest support level of the market, and my take profit level was placed on the market closest resistance level, just as seen above.
CONCLUSION
I have shared my analysis on ethusdt beginning from the monthly to the weekly to the daily and to the hourly.
From my analysis, I expect to see a bullish move on ethusdt.
https://x.com/JuecoYoung/status/1816573060042097129
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