As of writing this article, the day’s range for Ethereum was $170.82 — $174.50. With Bitcoin’s weak fundamentals combined with weaker technicals, it might be a golden opportunity for traders to delve into the promising world of Ethereum.
American citizens have started receiving $1,200 into their bank accounts as part of the $1.2 trillion relief package announced by the US Government for coping up with the ill-effects of the COVID-19.
Recent data shows that many benefactors of the relief stimulus have started investing this amount in various cryptocurrencies. Ethereum could be a viable investment considering the upside potential associated with it.
Let us first take a look at the four-hour chart for ETHUSD:
ETHUSD Chart Published on TradignView.com
Technical indicators that point to a rise in ETHUSD
- The four-hour chart for ETH shows the formation of a ‘Hammer‘ at the end of a downtrend. It was a definite indication that ETHUSD would go up. And Ethereum did rise from $153 to $173.
- Ethereum soon entered a ‘Bull Flag‘ formation. ETH did enter a horizontal zone after that, thereby confirming the pattern. The breakout from this pattern would most likely make ETHUSD reach all the way to $193.89.
- The Relative Strength Index or RSI appears to be firmly in association with the movement. On a 20,80 RSI scale, the RSI is currently around 65. Thus, ETH is still far from overbought territory. Therefore, ETH can reach past $190 without hurting the RSI.
- The MACD indicator is comfortably poised. There seems to be no indication of a downward crossover any soon.
- Most of the Moving Average indicators have a strong buy signal for Ethereum in the short term.
All these five technical indicators are among the most reliable indicators in TA. And all of them unanimously point to a rise of the ETHUSD in the short term.