In this episode of NewsBTC’s daily technical analysis video, We are going to look at Ethereum before the merge in various timeframes using both the USD trading pair and Bitcoin Vs.
Take a look at the video below:
Video: Bitcoin Price Analysis (ETHUSD and ETHBTC): September 6, 2022
Not much has changed in bitcoin and other cryptocurrencies since the past week. However, Ethereum continues to prepare for the upcoming merge and has posted some decent gains over the weekend. Here’s a closer look at Ethereum’s performance before the merge.
On the daily time frame, ETHUSD closed above the mid-Bollinger Band and should make another run at the local high. A potential bull flag breakout could signal a major rally. A bullish crossover on the LMACD also favors a higher carrying momentum for Ether price.
Adding credibility to the move, ETHUSD is trading above the Tenkan-Sen and attempting to close above the Kumo Cloud resistance. Notably, Ether was rejected from the bottom of the cloud before losing support at around $2,500.
Will a bull flag lead Ethereum higher? | Source: ETHUSD on TradingView.com
Signals from Ether’s Most Powerful Rallies
Ethereum is just above the mid-Bollinger Bands on the weekly time frame. Closing above the middle line, which is a simple moving average set on the 20-period, has given rise to some of the strongest rallies of the cryptocurrency. For example, in 2017, closing above it increased by 13,000% before the start of the bear market. The rally views are possibly supported by a bullish crossover from the LMACD.
To become truly bullish, Ethereum would have to reclaim the Ichimoku cloud. However, the price has already closed above the Tenkan-Sen at the start of the weekly. Interestingly, Bitcoin is still below this line in comparison, while Ether is well above it.
Making it above the mid-BB could be significant | Source: ETHUSD on TradingView.com
Related reading: SEE: Bitcoin September To Remember: The Good, The Bad, And The Ugly | BTCUSD September 1, 2022
ETHUSD Future Forecast: A Storm Is Coming
The rarely used 3-week time frame may tell a lot before we move on to a more direct comparison of Bitcoin and Ethereum. There are only five days left in the candle and ETHUSD has to move above the current level or else it will close through the Ichimoku cloud.
In the past, closing through a cloud would have resulted in a large down-move and final bottom. It is worth noting that Cloud Swept closed through support during the last bear market. This time, support was already flowing. Bearish momentum is also weakening on the time frame according to LMACD, so a reversal is possible.
The 3-week timeframe warns of danger or reversal | Source: ETHUSD on TradingView.com
Mergers to Lead to Strong Performance Against Bitcoin
ETHBTC is above mid-BB, which has led to some of the biggest rallies in the past, as in the example of the USD trading pair. Ethereum is also trading against the upper Bollinger Bands on the weekly time frame versus BTC, so a similar push outside the bands is possible.
Importantly, Ethereum retested the Ichimoku Cloud on the weekly time frame and is pushing against neckline resistance below the five-year long reversal head and shoulders. There was a 400% move from head to neckline, so a breakout from resistance could result in massive overperformance in Ethereum vs.
An inverse head and shoulders could send ETH higher | Source: ETHBTC on TradingView.com
Why a Big Move Could Be Taken Against BTC
Finally, switching back to the 3-week timeframe used for the USD pair, Ethereum has removed the cloud after retesting Kijun-sen and confirming it as support. It may also indicate the formation of a curved parabolic support. This is the first major consolidation since ETHBTC broke through the downtrend resistance, and the LMACD is set to move up and send Ethereum much higher than Bitcoin.
What Merge Catalysts Are Crypto Bulls Expecting? Be sure to leave a comment in the video above. Don’t forget to also subscribe to the NewsBTC YouTube channel and Follow us on Twitter,
High timeframes suggest there are clear skies ahead for Ether | Source: ETHBTC on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com