Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The Ethereum market has been noting a series of surges and corrections. The last correction followed another ascending channel built up and as the value once again accelerated on the price scale, the market has taken a bullish shape. Ethereum was being traded at $1,214, at the time of writing.
Ethereum four-hour chart
Source: ETHUSD on TradingView
Ethereum’s price has been increasing within an ascending channel from $905 to $1,200 now. Even though the overall trend in the market is bullish, the ETH market is ready to note yet another price correction.
As the price falls under $1200, the price might drop further down the price scale.
Reasoning
As the price of Ethereum surged a couple of days back, the 50 moving average moved under the price bars. This indicated that the price had begun trending upwards with bullish momentum. However, the gap between the price bars and the moving average was reducing, which was a signal for the changing trend.
The Relative Strength Index was heading towards the overbought zone, but before it could enter the zone, the value of the indicator fell. The traders began to sell the digital asset as it hit $1200. The Awesome Oscillator highlighted this evolving sellers’ momentum as the red bars began taking positions on the graph.
The AO was noting low momentum in the market but as the selling pressure increases the momentum may move under the zero-level.
Important levels
Entry: $1,196.54
Stop-Loss: $1,260
Take-Profit: $1,070
Risk-to-Reward: 1.98
Conclusion
At press time, the market momentum has been at a crucial stage before the trend change. The Bitcoin market has also been indicating sideways movement, which will add to the changing trend for the altcoin market. The traders may enter the ETH market at $1,196 and take a profit at $1,070.
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