Hello great minds,
It is a great opportunity to come before you all today to share my technical analysis on eth against usdt.
I believe you are all doing perfectly well and are enjoying your activities in the community as you actively promote steemit across various social media platform.
Ethereum is a very big cryptocurrency in the cryptospace and we are well aware of this.
Ethereum happens to be the second most biggest and popular cryptocurrency in the cryptospace.
After Bitcoin which is the driver of all other tokens, ethereum is known to be the next most valuable token, and I am here to share my analysis to it.
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
I begin my technical analysis from the higher timeframe, then I descend to the lower timeframe
On the higher timeframe, ideally the monthly timeframe, I seek to determine market trend
The monthly timeframe helps to eliminate market noise from the market and also compress the market to one screen.
And from this, it becomes very easy for the market trend to be predicted.
The screenshot above is that of the pair ethusdt on the monthly timeframe.
And as seen above, there are lesser candles on this timeframe and this is as a result of the time it takes for one of this candles to be formed.
On the monthly timeframe, it takes the time period of 1month for each candle to be formed.
And also, it is easy for the overall trend of the market to be detected on this timeframe, as we can see that the market is being bearish
I then continued my analysis by moving to the weekly timeframe, and on this timeframe I could see the market more clearly.
I could see the formation of several candles as each candle here is being formed within the trading period of 7days.
And looking carefully, I was able to identify a key level and this level is functioning as a resistance level to the price chart and the market is expected to be rejected as it trades towards this level.
And from the above screenshot, we can see the validity of this level as the market has made several touches on it and has been unable to break above it.
I then continued my analysis by moving to the daily timeframe and on this timeframe, I could see the market more clearly, I could see the formation of several bullish and bearish candles which shows the presence of the buyers and sellers in the market.
And looking carefully, I was able to identify another key level and this level is functioning as a support level to the price chart and the market is expected to be rejected whenever it trades towards this level.
We can see the validity of this level from the screenshot above, as the market made several touches on this level and was unable to break below it.
I then continued my analysis by moving to the 4hr timeframe, and on this timeframe, I could see the market more clearly.
I could see lots of noise in the market as the buyers and sellers struggle to drive the market to their preferred direction.
And from the above screenshot, we can see that the sellers are in control of the market as it keeps forming lower lows and lower highs.
And on this timeframe, my bias towards the market changed and has turned bearish, as we can see clearly, the market has broken below this support level.
And as such we can expect a retest on this level and then a bearish continuation, and with that, U decided to search for confluence using relative strength index indicator.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
The relative strength index indicator is an indicator that helps to identify overbought and oversold market.
When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.
An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.
Applying the rsi to the monthly timeframe, I could see that the market is being oversold, and an oversold market is understood to mean a bullish trend reversal
And an oversold market can be detected when the rsi crosses below its 20% line, and this indicates the change in strength of the market from the sellers to the buyers.
And getting to the daily timeframe, I could see that the market is being oversold, and an oversold market is detected when the rsi crosses below its 20% line.
And an oversold market is understood to mean a bullish trend reversal of the market, that is, a change in market strength from buyers to the sellers.
I then moved to the 2hr timeframe, and I placed my buy order on the closest resistance level to the price chart and my take profit was placed in a way that I get a risk to reward ratio of at least 1:3.
CONCLUSION
I have shared my analysis on ethusdt beginning from the monthly to the weekly to the daily and to the hourly.