Ethereum (ETH) is in a hurry to rally towards $300. The price has currently run into resistance around the $266 mark but the big picture indicates that we are likely to see the price rally past $300 in the days and weeks ahead. The ascending triangle on the daily time frame for ETH/USD could result in the price breaking to the upside in the same manner that it did during May. It is important to note that the price has also found support at the ascending channel and is now likely to rally towards the top of this channel before we see any pullbacks. The price remains above its 21 day exponential moving average and is expected to consolidate above it before its next big move to the upside. RSI also shows that there is ample room for a rally from here. The bulls are trying to regain control as the sentiment is gradually turning bullish.
The Crypto Fear and Greed Index is currently at 67, up from 63 yesterday and 62 last week. This goes on to show that greed is returning to the market and we might see a strong breakout anytime soon. Those that have been following ETH/USD for a while now might have noticed that it has kind of lagged behind against Bitcoin (BTC) compared to other altcoins. This is because Ethereum (ETH) remains overbought against Bitcoin (BTC) on larger time frames. For traders, it would make much more sense to go long on Bitcoin (BTC) than Ethereum (ETH) as the risk/reward is not worth it. Besides, we have seen that Tether (USDT) printing benefits Bitcoin (BTC) first which is then followed by an outflow of money from Bitcoin (BTC) into altcoins like Ethereum (ETH). Some traders are expecting a head and shoulders formation to play out but we do not expect that to happen before the market cap of Tether (USDT) starts to decline.
The weekly chart for ETHUSDShorts is more of a bull’s nightmare. The strong downtrend that kept the bears from pushing higher has now been broken and the number of margined shorts might be expected to rise. As the bearish pressure mounts up, we are likely to see the price of Ethereum (ETH) top out in the weeks ahead after a strong rally to the upside. ETHUSDShorts is expected to keep on rising as Ethereum (ETH) rallies.
The manner in which ETHUSDShorts rises or falls also gives us meaningful insights as to what the market makers are planning. If the shorts begin to stack up at a time when everyone is expecting a drop, we usually see the opposite happen. However, this time the price will be out of room to do the ‘opposite’. Instead, market makers will have to crash the price fast enough to prevent shorts from stacking up. Considering the shape of global economy and the state of the stock market in general and that of the cryptocurrency market in particular, the risks are too high to be buying at these levels even if it means missing out on a mini rally short term.