Ethereum Analysis: 30/06/2019 – The Potato Trader

Ethereum Analysis: 30/06/2019 – The Potato Trader

Ethereum, ahh the father of all altcoins. Been wanting to do an analysis on ETH but LTC was my choice a few weeks back due to the upcoming halving in a month’s time. ETH was my favorite coin since I entered the scene about 1 year ago. It was my gateway to other altcoins and ICOs, and since it was more volatile compared to BTC, I loved it as my choice of medium of storage of crypto value back then. But of course, it lost much of its value to just below $80 at the end of 2018. With lots of development coming up for new projects using ERC20 tokens, ETH v2 in 2020, etc, I’m fairly certain we will see a huge run-up of ETH in the next few years.

Furthermore, BTC has already recovered more than 50% since the “bubble” burst, while ETH is still a far cry away from its 2017 AATH of $1420. It is still about 80% away from the ATH, and with the next altcoin season, we will see this monster unleash some crazy gains. Personally, I do not hold much ETH (currently about 8% of my portfolio), but I will slowly add and ladder some entries in the future. As of now, my plan is to accumulate more BTC and some LTC, and once BTC starts to consolidate, then I will sell my BTC into other altcoins. The goal here is to accumulate as many SATs as I can.

Weekly Chart:

Interestingly enough, using Di Levels to draw out the Fib nodes, we do not see any key fib nodes going below the current price to provide support. This shows how low the price has fallen, and probably a good indication for the long term investor to get some (though do not enter just solely on this, more indicators and confirmations are needed). 962 provides a key confluence level of resistance, though that is a level that is 300% away, and I will bet my balls that this cannot be achieved in a day, but we shall see. COP is at 1192 and OP is at 1706. All levels are pretty far for the current price action. NEXT.

Daily Chart:

Another pretty simple and straightforward chart to analyze. The immediate key support level is at Confluence A, which is 280. This level has provided a key resistance in the past, with price testing it 3 times before breaking out higher. It is a good entry level to go long, and I will if I decide to get some ETH. The first profit level to exit is at 409, not entirely impossible if we do have a repeat of the crazy bull run last week. I’m not counting on that again though, so I will give it a while before we see 400+. OP is at the other end of the 400 range, sitting at 492.

4HR Chart:

We can see ETH trading in this diverging channel, with price breaking out both above and below the channel briefly before returning back in. No one has a crystal ball, but I would think that price will continue to be contained within this channel for a while before we see any significant reactions as markets are cooling down. The immediate support here is at 300, but since it is pretty close, the next level to watch is 286, in case this support does not hold. COP here is at 337, pretty reasonable target, and still within the channel so a very possible target to hit for the upcoming week.

1HR Chart:

Very similar levels in the other charts as well, we see key support levels at both 300 and 286 here on the hourly. There is major resistance at the 338 regions as it is an agreement area A between both the F3 Fib node and the COP. Take profits here!! Another key resistance to note is at the confluence area Bof 323. Both COP and OP are the same at 4HR.

Alright, a pretty short and simple Fibonacci analysis on ETH for the coming week. I don’t want to do anything too in-depth, especially in the current market conditions, where things are moving so unpredictable and fast, that my analysis may in obsolete even by tomorrow.

Also, I’m considering to start trading with some margin once I get a better hang of analyzing the LTF charts. Will get my BitMex account ready in advance first ?

TLDR:

Published at Sat, 29 Jun 2019 16:44:11 +0000