ETHEREUM Major rally ahead if the 1W MA50 breaks

24 mar 2022

Last time I looked into Ethereum (ETHUSD) was at the beginning of the month, where I presented a trading plan based on the break-outs of the Triangle on the 1D time-frame:

Now that the price broke above the Triangle, causing a bullish break-out signal as per the strategy, it is time to look into ETH again but on the 1W time-frame as we are ahead of a critical test.

As you see, the price is about to hit the 1W MA50 (blue trend-line). ETH hasn't closed a week above it since the January 10 2022 1W candle. It doesn't therefore take much to realize how important of a Resistance level this trend-line is. What may be even more crucial though is the fact that during the 2016/2017 Bull Cycle, the price formed the very same Accumulation pattern that ETH has been currently in since the May 10 2021 candle.

At that time, the accumulation ended when after 2 months of trading below the 1W MA50, Ethereum closed a 1W candle above the 1W MA50, causing a bullish break-out signal and initiating a massive parabolic rally. Right now, we may be entering this last phase of the Accumulation where a 1W candle close above the MA50, can kick-start the next rally. Even the 1W RSI sequences during the Accumulation phases are similar. Regarding where the next top may be, a safe idea is to look for a test of the RSI Resistance Zone, which is where the rallies historically take a pause.


--------------------------------------------------------------------------------------------------------

** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **

--------------------------------------------------------------------------------------------------------