Smart contract platform, the largest altcoin in the crypto world Ethereum (ETH)Looks like it could find good support if it stays within these technical indicators. According to technical indicators, the items that threaten the “short-term” downtrend continue to decrease.
Ethereum price confirmed a “primary support zone” near the $3,800 value area. It was necessary to hold this zone to avoid a collapse in prices. With this, EthereumShould continue to push higher to thwart any near-term bearish bias.
Ethereum price has signaled a break above the bull flag.
Ahead of Ethereum price are currently two major resistance levels preventing further upside momentum. Tenkan-Sen at $4,050 and Kijun-Sen at $4,100 are the two levels Ethereum needs to break and hold higher. Doing so will create an aggressive early buying opportunity.
The hypothetical buying opportunity is a “buy stop order” of $4,125, a “stop loss” of $3,800 and a profit target of $5,435.
The entry will only be valid if the daily close is at or slightly above the $4,125 price level. While it’s usually not a good idea to trade with an instrument in the cloud (it’s clearly warned in the Ichimoku Kinko Hyo system), this current setup is a rare exception.
The exception is a technical indicator based on the conditions of the oscillators. The relative strength index continues to maintain a tight congestion zone between 40 and 50, the two oversold levels in a bull market. Most importantly, however, is the “composite index.” The composite index broke above both moving averages at the same time while in neutral territory.
If the combination of the “relative strength index” and composite index values could trigger the hypothetical bullish entry, ETH indicates a significant momentum behind the price.
The hypothetical long setup will be void if the Ethereum price has a close below the “Cloud”.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.