On Thursday, Ethereum (CRYPTO: ETH) was heating up again in a rising channel Benzinga called out Nov. 4. The crypto has continued to be unable to break bullishly or bearishly from the channel, which indicates the pattern is being recognized as valid.
The US Government Bonds 10 YR Yield (TVC: US10Y), which has been known to correlate to the cryptocurrency market, was attempting to break bullishly over Wednesday’s high-of-day on Thursday afternoon. The 10 YR Yield rising can be positive for the crypto market while being negative for the Nasdaq and big tech stocks because the 10 YR indicates investors may prefer higher-risk and higher-reward investments.
See Also: How to Buy Ethereum
The Ethereum Chart: Ethereum began trading in a rising channel on Sept. 21 and has made a consistent series of higher highs and higher lows as it walks up the parallel trendlines of the pattern. Ethereum’s most recent higher high and higher low was made on Wednesday at the $4,460 level and the all-time high of $4,867.81. Ethereum will need to make a new all-time high over the coming days in order to continue the uptrend.
On Thursday, Ethereum was printing a bullish inside bar, completely within the range of Wednesday’s mother bar candlestick. If Ethereum doesn’t break up bullishly or bearishly from the pattern before the 24-hour session closes, traders can watch for a break from the formation on Friday. The inside bar pattern is considered bullish because Ethereum has been trading in an uptrend.
The dips in Ethereum’s price as it creates high lows have helped keep Ethereum’s relative strength index (RSI) below the 70% level. Since Oct. 20, each time Ethereum’s RSI has touched the 70% level, the crypto has retraced to cool the oscillator. When a stock or crypto’s RSI reaches or exceeds the 70% level it becomes overbought, which can be a sell signal for technical traders.
Ethereum is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
- Bulls want to see Ethereum trade up toward the upper trendline of the channel and then for big bullish volume to come in and break the crypto through the ascending trendline. Outside of Wednesday’s all-time high Ethereum doesn’t have any resistance in the form of price history.
- Bears want to see big bearish volume come in to break Ethereum down from the bottom ascending trendline of the channel. The crypto has support below at $4,617 and the $4,384 level.
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