ETH Bulls unloads a combination on the BearsHello everyone !
Glad to say that we finally we have a confirmed breakout in the upward direction !
I'm feeling confident that we have established a bottom and we are looking to progress further.
I was discussing volume in one of my earlier charts, I mentioned that the volume was lackluster and it was a concern of mine,
however after further reviewing the volume i have come to the conclusion even though we lacked volume intially,
we have seen a increase of volume at each resistance, when our largest hurdle was met we saw an increase.
It's also important to note that we are not moving to extreme highs with relative low volume, but only enough to sustain us in the current uptrend channel.
I see this as a healthy recovery and i expect volume to increase over time.
When we made the move from 460 to 650 the volume was roughly 60% more compared to when we moved from 662 to 676.
Bare in mind that that the resistance should be higher as we progress further not lower, but yes, we are not having any crazy volumes like when we hit bottom that bought dirt cheap ETH (at our major support zone).
You can also read the information regarding volume in a ascending triangle outbreak, "while volume confirmation is preferred, it is not always necessary".
The volume also contracted during the ascending triangle (dashed black in the volume bar) - this is totally normal.
Where do we go from here? That i wonder too. We can see that right after we broke out there was a huge bearish candle that got absorbed, followed by bullish candle,
I'm not expecting 700 to act like a support zone, but it is definitly a zone that will keep on get tested until the bears give it up to the bulls, we are still fighting over territory here.
Instead i will rely on the orange dashed line as a support/stop loss below, it's a trendline that the bears got rejected several times over until we finally broke out to the upside.
I have mapped out the channel, which looks very similar to one of the earlier charts i made, so that chart is still some what relevant.
I have added a paralell channel to the end of the ascending triangle as we might consolidate above the 700€ resistance point we broke.
Next big hurdle will be 750€ and 800€, as we start to slowly chop away more to the upside (this will be a progress) I'm expecting more and more volume to enter into the market.
As we all know, there has been a lot of FUD which is keeping investors away, bubble talks, crash talks, Tether, Binance, China, etc etc, but i feel like people will start to get attracted to crypto again very soon as the market displays an extreme resiliance and strength. However, if we were to talk real world stuff, the stock market is a bit concerning right now and that could have a ripple effect into crypto if shit hits the fan.
Until next time,
- ETH Hunter -
