A practicing trader and founder of the project talks about the current situation on the market Crypto Shaman Vadim Shovkun.
There is minimal volatility in the market for bitcoin, the latest review is relevant. Therefore, let’s consider the situation on the second cryptocurrency in terms of capitalization.
The first thing to look at is the strength index in correlation with bitcoin. Ethereum looks a little stronger, the last wave of growth is not absorbed, the overall structure of HLHH is not broken. At the moment, Ethereum is at a distance of 17% to its last wave low (Bitcoin is only 7%).
Now ETH is trading within the main horizontal volume of the previous growth wave (HVN). If bitcoin fails to consolidate, the coin will go -34% to the next resistance in horizontal volume (compared to -23% for BTC). As part of the rebound on the momentum, growth is currently predicted to increase by +22%.
Based on this, we can consider interesting areas for searching for long positions. The $3085-$3140 area is a small support zone, while the stronger zone is in the $2850-$2950 range.
When going to the second zone, most likely, a bullish divergence will form on the RSI + W-shaped formation, which will also be long signs.
In the event of a failure under the $2850-$2950 area with consolidation, Ethereum will have serious problems – the downside margin is quite large. But such a development of the situation is possible only if bitcoin fixes below $40,000, which will indicate a change in the medium-term trend and the beginning of a crypto winter.
