Double bullish divergence on ETHBTC

Everyone is looking at a possible head-and-shoulders top on ETHBTC (pattern forming since January 2018), and currently the price is at the neckline and showing a very significant bullish divergence on RSI. Both highs and lows diverge between price and RSI on several timeframes (4h shown). There's also a confluence of fib retracement (50%) and historical support at around 0.073 level which further strengthens the support.

So my view is based on the the following technical indicators:
- H&S pattern since January is creating a bearish pressure, but remember that H&S patterns in general can also indicate trend continuation;
- strong bullish RSI divergence on both highs and lows;
- historical support level around 0.073 (current price);
- 50% fib retracement at the same level;
- ETHUSD went mostly sideways during recent BTCUSD rally, opening it for more upside compared to BTC.

Regarding fundamentals:
- ETH is currently processing roughly 3.5x more transactions daily compared to BTC;
- Number of active ETH sender addresses is beginning to overtake BTC;
- BTC is still dominant in the amount of value transferred;
- Ever growing use cases, developments and active dapps for Ethereum network;

Taking all of the above into account, I'm bullish on both ETHBTC and ETHUSD. This is not a trading advice, just my view. Please do your own research and invest responsibly.
Your comments are very welcome. Happy trading!

Zlecenie zamknięto ręcznie:

Well, that worked moderately well until March 11. Lesson learned is that all the indicators just help you determine the *most likely* trend, the real price action that follows is at future's discretion. There were also some bearish news that hit ETH harder than BTC, hence the negative outcome.
Another point that I often stress about ETHBTC ratio is that TA on it is limited since it to a large extend just follows 1/BTC. I also contains a mixed result of fiat to ETH and BTC actions.