Značka: Bull Flag

Ethereum bulls retain hopes of $10K despite ETH price chart bear flag

Ethereum’s native token Ether (ETH) looks poised to extend its selloff this week as it wobbles near a key support level of $4,000.ETH price dropped by over 5.50% on Dec. 6 to an intraday low at $3,913. In doing so, it slipped through upward sloping support that constituted an Ascending Channel that — more or less — appears like a Bear Flag, a bearish continuation setup.ETH/USD daily price chart featuring Bear Flag setup. Source: TradingViewConservative traders typically spot Bear Flags when an instrument consolidates higher inside a parallel channel after a considerable price drop (called Flagpole). They anticipate the price to break below the Flag’s lower trendline. And when it does, traders set their profit target by measuring the Flagpole’s height and subtracting it from the breakout level.Applying the Bull Flag strategy to Ether’s ongoing price trends, one can expect the cryptocurrency to drop towards $3,200 in the sessions ahead. Interestingly, the level is also near the 0.5 Fib line (~$3,264) of the Fibonacci retracement graph drawn from the $720-swing low to the $4,808-swing high.More confirmation neededWhile the Bear Flag setup hints at more pain for Ether ahead, some analysts believe the Ethereum token still has more room to run to the upside.For instance, PostyXBT, an independent market analyst, asked his massive follower-base on Twitter to turn attention to Ether’s deep price wick from Saturday, underscoring how the cryptocurrency’s sudden crash from near $4,240 to as low as $3,575 (data from Coinbase) was met by traders with an aggressive buying response.”The weekly close above $4k means that ETH is one of the strongest looking coins out there,” the pseudonymous analyst noted, adding that not many held the structure “despite the wick.”ETH/USD weekly perpetual futures contract chart. Source: TradingViewMeanwhile, another popular analyst Crypto FOMO also referred to the Saturday rebound as a reason to stay bullish on Ether. In an analysis published Monday, the analyst said that the cryptocurrency’s ability to hold its rising channel support (the Bear Flag structure) might prompt bulls to push its value to $10,000.”That is also because Ethereum is crashing a lot lesser than other cryptos, which is very bullish,” the channel noted while highlighting Ether’s growing strength against Bitcoin (BTC).Top ten cryptocurrencies’ performance against USD and BTC in the last 30 days. Source: MessariOn its weekly chart, Ether looks to have been eyeing a move toward $6,500 after breaking out of its Ascending Triangle.In detail, the ETH price left the Triangle range in the week ending Oct. 25 after consolidating inside it for a little over four months. Nonetheless, traders returned to test the structure’s upper trendline as support, as is common across bullish continuation setups.ETH/USD weekly price chart featuring Ascending Triangle setup. Source: TradingViewAs long the price holds itself above the Triangle’s upper trendline, its likelihood of continuing its rally upwards remains higher — by as much as the structure’s maximum height, as shown in the chart above. On the other hand, a decisive break below the Triangle’s lower trendline risked invalidating the bullish setup.Strong fundamentalsJames Wo, CEO/Founder of DFG Group — a Singapore-based venture capital firm, blamed Ether’s consistently positive correlation with Bitcoin behind its latest price corrections, noting that a spot market selloff in the BTC market, led by the ongoing Omicron FUD, has had exchanges liquidate $2 billion worth of traders’ margined positions, hurting ETH in tandem.Related: BTC sentiment ‘comparable to a funeral’ — 5 things to watch in Bitcoin this weekBut the analyst, too, anticipated a price rebound for ETH based on its successful adoption across the emerging nonfungible token (NFT), decentralized finance (DeFi), and metaverse space.Top five DeFi chains based on total-volume locked. Source: Defi Llama “The levels of open interest levels seen up to this correction for both BTC and ETH were an important indicator that a bearish scenario was highly probable,” Wo explained, adding:”We still believe that fundamentals are strong and long-term valuations are still very low based on the technological advancements and contributions we are witnessing from this industry.”ETH/USD was trading at $4,050 at the time of this writing.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac

Traders say ATOM could eventually do an AVAX-like surge to $100

Cosmos (ATOM) has the potential to record major gains in the upcoming weeks primarily because its longer-timeframe chart is showing a bullish continuation pattern. Dubbed “bull flag,” the structure appears as the asset trends lower while bouncing between two downward sloping trendlines. However, it eventually breaks out of the range, in the direction of its previous trend, with a profit target at length equal to the size of its previous uptrend which is also known as the flagpole.ATOM/USD weekly price chart featuring Bull Flag setup. Source: TradingViewTherefore, in a “perfect” world, if ATOM is to break above the flag’s upper trendline (with a rise in trading volume), it may rise by as much as the flagpole’s height around $35. This sets a price target near $65 as when measured from the current potential breakout point.Nearly 64% of ATOM’s total supply is stakedThe bullish setup in ATOM appeared as the token rose over 330% from its June low at $7.82 to this weeks swing high near near $32.Circulating token scarcity could be playing a role in driving buyers into the market. Data fetched by Messari showed that nearly 64% of the current ATOM supply is staked.ATOM staking data. Source: MessariAccording to data, Cosmos investors have staked over 180 million ATOM tokens to become validators on its ‘Cosmos Hub,’ a proof-of-stake blockchain that constitutes one of many hubs on the network. In return, users receive a portion of the network transaction fees and block rewards.Pentoshi, an independent market analyst, noted that the rising number of staked ATOM tokens have been instrumental in pushing its price upward. The pseudonymous Twitterati added that ATOM sellers have been losing momentum, citing two corrections during the fourth quarter that got stopped midway due to a higher buying pressure near the token’s previous all-time high levels.ATOM/USD daily price chart by Pentoshi. Source: TradingViewAccording to the analyst, ATOM is seeing clear:”Signs of absorption”Related: Price analysis 12/1: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, AVAX, SHIBAvalanche fractal highlights ATOM’s potentialAnother analyst, known by the pseudonym ‘Bluntz,’ anticipated that ATOM would continue its rally upward based on similar gains posted by one of its top blockchain rivals, Avalanche (AVAX), earlier this year.Like Pentoshi, Bluntz views ATOM’s chance of revisiting its previous record-high as a base to continue its bull run. In a similar setup, AVAX rallied by nearly 250% after finding a solid footing inside the $50 to $60 support area.ATOM/USD vs AVAX/USD daily price chart by Bluntz. Source: TradingViewAccording to Bluntz, ATOM could easily hit $100 in the medium-term.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
Načítava

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy