In this episode of NewsBTC’s daily technical analysis videos, We will be looking at Ethereum before the Merge in a range of timeframes, using the USD trading pair as well as versus Bitcoin.
Check out the video:
VIDEO: Bitcoin Price Analysis (ETHUSD & ETHBTC): September 6, 2022
There has not been much in Bitcoin and the other cryptocurrencies over the past week. Ethereum posted decent gains this weekend as it continues to prepare for the Merge. Let’s take a look at Ethereum performance prior to the Merge.
ETHUSD ended above the middle Bollinger Band in daily timeframes. It should now make another push for local highs. An eventual bull flag breakout might signal a wider rally. Bullish crossovers of the LMACD could also support momentum that drives Ether prices higher.
Further strengthening the evidence of an up-move in ETHUSD, it is currently above Tenkan-sen. It is also attempting to surpass Kumo resistance. Notably Ether was rejected by the bottom of cloud, before losing support around $2,500
Is a bull flag going to push Ethereum higher?Source: TradingView.com, ETHUSD | Source: ETHUSD on TradingView.com
The Signal From Ether’s Most Powerful Rallies
Ethereum has been battling the middle Bollinger Band in weekly time frames. Closing above the middle line, which is a simple moving average set at 20-periods, has led to some of the cryptocurrency’s strongest rallies. In 2017, for example, closing above the LMACD led to an 13,000% rise before a bearish market began. A bullish crossover in the LMACD could support the idea of a rally.
Ethereum needs to regain the Ichimoku cloud in order to truly be bullish. However, the price closed higher than the Tenkan-sen at the weekly. This is an encouraging sign. It is interesting to note that Bitcoin remains below the Tenkan-sen line, while Ether is far above.
It could make a difference to get it over the mid-BB. Source: TradingView.com.| Source: ETHUSD on TradingView.com
Related Reading: WATCH: Bitcoin September To Remember: The Good, The Bad, & The Ugly | BTCUSD September 1, 2022
The Storm is Coming!
We should first look at the 3-week period, which can be very useful in comparing Bitcoin to Ethereum. Only five days remain in the candle, and ETHUSD needs to rise from its current level. Otherwise it will be closed through the Ichimoku clouds.
Closing through the cloud has historically led to large down-moves and the ultimate bottom. Notably, support was swept during the bear market by closing through the cloud. Support was already broken this time. According to LMACD, bearish momentum is also waning. Therefore, a reverse is possible.
Warning signs of danger and reversal are displayed for the 3-week period. Source: TradingView.com ETHUSD| Source: ETHUSD on TradingView.com
The Merge Will Lead Strong Outperformance Against Bitcoin
ETHBTC’s mid-BB is higher than BTC, which has in the past led to large rallies similar to the USD trading pair. Ethereum can also be pushed against BTC’s upper Bollinger Band in weekly timeframes.
Ethereum has retested Ichimoku clouds on weekly timeframes, and it is pressing up against neckline resistance after a 5-year-long inverse head/shoulders bottom. The 400% movement from the head to neckline was significant, and this could result in a huge overperformance of Ethereum versus Bitcoin.
Source: ETHBTC on TradingView.com| Source: ETHBTC on TradingView.com
BTC could face a huge move
After retesting and confirming the support of the Kijun-sen, Ethereum finally removed the cloud. It could also indicate that curved parabolic support is forming. This consolidation is the first since ETHBTC emerged from its downtrend resistance. The LMACD looks ready to go up, sending Ethereum far higher than Bitcoin.
The Merge will be the catalyst for crypto bulls. Leave a comment below. Don’t forget to subscribe to NewsBTC YouTube channel. follow us on Twitter.
High-timeframes are a sign that Ether has clear skies in the future. Source: ETHBTC at TradingView.com| Source: ETHBTC on TradingView.com
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Featured image taken from iStockPhoto. Charts taken from TradingView.com