Hey team,
And there we go, the layup trade of the year just dropped into the bucket.
How it took Ethereum this long after Bitcoin to properly break out of its own 2018 all time highs, I'll never know.
Take a look at the Ethereum weekly:
ETH/USD Weekly:
You could argue that this new bull run was at least somewhat inspired by what's going on in the DeFi industry.
When 90% of what's going on is happening on Ethereum, I just thought it was batshit mental that the ETH/USD market was lagging so far behind BTC/USD.
Now zoom in a little further and have a look at the Ethereum daily chart:
ETH/USD Daily:
Even thought this resistance zone was from years ago and so far back that it's not even visible next to today's price action on the daily chart, you can see price still respected it.
What The Daily Price Action Shows
What the three daily wicks into resistance perfectly shows, is the shift in power between the bulls and bears.
You can see that each time price pushed into resistance, it went on to print higher lows each time it tried again.
With each push up into resistance, the sellers are getting weaker.
We are watching them become accumulated by buyers each time, until there are no sellers left.
And what happens when there are no sellers left and only buyers remain?
Yep, a boom breakout!
Exactly what we see here.
Pretty cool huh :)
After breaking out of its own 2018 all time highs back at 20K, Bitcoin went on to double in price fairly fast.
With its own parallel 2018 resistance level now gone, will we see Ethereum experience a similar price explosion.
I wouldn't count it out.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.