Ethereum Price Analysis – 5th March 2021

Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

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On the ETH/USD daily chart, the 50-day and 200-day Exponential Moving Averages (EMAs) have been bullishly crossed since late May 2020. Both the 50-day EMA, at US$933, and 200-day EMA, at US$1,533, should now act as support. Significant volume support, based on VPVR (horizontal bars), sits in the US$500 – US$700 zone, with minimal volume support above this level.

Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

Daily Cloud metrics, with doubled settings (20/60/120/30) for more accurate signals, are currently bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above Cloud and above price. The trend will remain bullish as long as the spot price is above the Cloud, currently at US$1,270.

On the four-hour Cloud, metrics have flipped bearish. Based on intra-trend data, a bullish flip in Cloud metrics should be seen as a sufficient long entry signal. A potential bullish reversal pattern, the inverted head and shoulders (iH&S), has also formed, with a 1.618 fib extension and measured move of US$1,920 to US$2,050. The neckline of the iH&S also matches the four-hour Cloud level, suggesting a confluence of resistance, as well as additional evidence for a long entry.