In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at Ethereum ahead of the upcoming Merge using the ETHBTC monthly chart.
This episode focuses on the Ethereum versus Bitcoin trading pair with the Parabolic SAR and Ichimoku Cloud. The video is below.
VIDEO: Ethereum Versus Bitcoin Analysis (ETHBTC): August 23, 2022
Looking at Ethereum’s monthly chart, after a clear violation of the last uptrend ending in 2017, Ethereum entered a bear market against Bitcoin –– yet was able to build a stable rounded base over the last five years.
A rounded support and an inverted head and shoulders
This rounded shape could also be used to form an inverted head and shoulders bottom. The trade’s foundation is in place, and Merge is on the way. This trade holds a lot potential. A 350% rise was seen from the swing low in the pattern to its neckline.
Applying the measure rule multiplied by the pattern’s percentage of meeting its price target, the pattern’s target is roughly 250%.
The right shoulder will confirm this pattern.Source: ETHBTC at TradingView.com | Source: ETHBTC on TradingView.com
Do the Parabolic SARs suggest that there is a flippening ahead?
The Parabolic SAAR tool is a sign that a new trend could be emerging. The Parabolic signal is used to indicate when the moment has arrived. The SAR counter is used by traders to position a trailing loss below or above the trend.
These signals were activated monthly. The signal was activated twice previously, when Ethereum gained more than 1,000% against Bitcoin and 25% against Bitcoin. This second number confirms the price objective for the inverse head-and-shoulders pattern.
Could Ethereum be about to become parabolic in its fight against Bitcoin?Source: ETHBTC from TradingView.com | Source: ETHBTC on TradingView.com
ETHBTC Still In the Clouds
ETHBTC currently remains under Ichimoku Cloud Resistance. A break through from the cloud might bring the lightning and thunder Ethereum bulls need.
Prices are above Tenkan-sen as well as Kijun-sen. Both of these levels are bullish. If you look at the Chikou span price is at an important resistance level. Only one resistance level remains until price discovery.
Ether cannot get out from the clouds... Yet | Source: ETHBTC on TradingView.com
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Featured image taken from iStockPhoto. Charts taken from TradingView.com