Ethereum is rising beautifully parabolically and is only a few dollars away from ATH. Today we are going to analyze some timeframes to look at the possibilities. The daily chart is looking very favorable in my opinion.
The ema's are showing a strong uptrend and the rsi confirms it. On the rsi we see a higher low formed and also on the daily a bullish crossover is going on. Furthermore, we will really have to zoom in further to pick up the current signals as there is little to no historical data available which makes charting a bit more difficult. The extended Fibonacci levels you see are in any case possible targets where traders will take their profits.
On the 4 hour chart ETH is currently trading in the supply zone of the previous top and we also see that a rising wedge has been formed. Should the rising wedge start to play out then the price could drop to the parabolic trend line. But as you probably already know I don't trade the patterns, but I do keep them in mind.
We also see a strong uptrend on this chart with the supply zone serving as resistance. The ema's are in favor of a further rise but the rsi seems a bit weak but is moving up for now.
Early this morning a test took place on the supply zone with price making a small retrace. Currently it is shooting through and testing the upper trend line of the rising wedge.
The ema's are also starting to widen on this timeframe, which means that the strength of the trend is increasing. And looking at the ris we see that the rejection of the supply zone has been nicely absorbed by the added ema on the rsi.
Conclusion:
I do expect that we will break the ATH today or tomorrow to set a new one. Ethereum will encounter resistance at 1427 which is the current ATH. After that we will see resistance between 1720 - 1770 dollars. This is where the Fibonacci extension level 1,618 on the daily and the Fib 3,618 on the weekly trend based Fibonacci extension lie.
There remains a possibility that the rising wedge will come into play and then ETH may well go down to $980 - $1050.
