After the week started at $38,000, the market managed to climb again at $39,500, confirming the “fair price” theory that indicates a steady return to the mean. The average point in our case remains at $40,000.
As long as the consolidation zone continues to dominate the possible market outcomes, we expect that any uptrend or downtrend will bump into the support level around $35,000 – $36,000 and the resistance level around $44,000. After that bump, it will return at $40,000, which will serve as the market aggregator for the trading volumes also.
Today, in the first hours, we also observed a spike in the price above $40,000, which was eradicated quickly as market makers took up the action and hold the price at the previous levels.
The moving averages remain at bearish positioning, showing that multiple signals will appear in this period without any impact on the price formation. The trading volumes remained at normal levels, showing that this early uptrend was made from smaller accounts.
Yesterday, a bullish signal came up in the market showing that there is another uptrend coming in the next hours. This signal was confirmed 8 – 10 hours later when there was a tremendous spike in the market, reaching $41,600 in just 3-4 hours.
This means that the signals are observed from more and more investors and they are looking for new opportunities to catch any wave they can at this period. The best way to exploit these signals is to have a “take profit” strategy and a “stop-loss” order whenever there is a moment of action.
This will help you to take the full potential from a confirmed signal while managing the risk and get protected from extensive losses when the signal was proven misleading for the market direction.
MACD index was once ahead of the confirmed signal as it shows that the market will start to rise again on March 14th, a day before the signal occurs. This means that we could use the MACD index as a complimentary confirmation for the signal process.
The RSI index has not produced anything useful for now, so it remains in our monitors for future use. We expect that the RSI index could be used in more clear directions from this.
Ethereum has found a solid support zone around $2,500, giving out the opportunity to investors to build positions above this level. On the other hand, we can observe that the price is trying to make moves on the upper deck but the peaks are getting lower and lower.
The first efforts for peaks were made around $3,200 and $3,100 but the next peaks became evident at $3,000 and $2,700 respectively. This formed a triangle in the last month, which might predict a positive breakout for the Ethereum market, always under support from the $2,500 level. Of course, the compression might lead the market into a ranging situation again but the probabilities will be on the positive side.
The moving averages have been on the bearish side so we might observe another touch in the $2,500 line again. The trading volumes remained at normal levels, without surprises.
The short-term view of the Ethereum market can show us that the compression will become more and more intense in the next period. This intensity could lead the market into stronger positions and new directions for the next period.
The expectations lay on the positive side as the support level looks quite strong while the resistance points seem easy to break at this moment. The news will tell the entire story in the end.
MACD index is moving back and forth in the “green” and the “red” side, showing that the momentum has not a clear direction or impact on the price formation.
The RSI index remains around value = 50, which means that the price can remain on the same spot for this period, without any exciting developments for the market structure.
In the day-trading window, we can observe that the last three signals were proven right, delivering profits for day traders. The last signal appeared yesterday night when the price went from $2,550 to $2,600 in some hours.
The consistency in the signal confirmation varies from signal to signal and this could give us more volatility in positioning we want to make in our portfolio. The confirmation for the signals will be accompanied by the indicators below.
MACD index has been near zero for the previous hours but the consecutive green boxes, indicate that the bullish signal in the previous paragraph can be confirmed for this period.
On the other hand, as we told in the Bitcoin section, the RSI index didn’t offer any new signals for this section.
Bitcoin has made another “return to the mean” position, climbing back to $40,000 from $38,000. The volatility has been lowered, taking into consideration that the market has not been in a clear direction for the last months.
Ethereum is following Bitcoin’s developments, for now, holding a position above $2,500, without being able to draw a positive action at higher levels. The compression has been more intense than before, showing that the market can change its direction any time soon.
Get ready for the next period!
Read our previous Bitcoin Price Analysises here!
Don’t worry, we hate spam too
one weekly digest, just the important stuff.