In this episode of NewsBTC’s daily technical analysis videos, we are going to look at Ethereum ahead of the Merge across a variety of timeframes using both the USD trading pair and versus Bitcoin.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (ETHUSD & ETHBTC): September 6, 2022
Not much has changed in Bitcoin and other cryptocurrencies since last week. However, Ethereum continues to gear up for the upcoming Merge and posted some decent gains over the weekend. Here is a closer look at Ethereum performance ahead of the Merge.
On daily timeframes, ETHUSD closed above the middle-Bollinger Band and should make another run at local highs. A potential bull flag breakout could hint at a larger rally. A bullish crossover of the LMACD also supports momentum carrying Ether prices higher.
Further adding credence to an up-move, ETHUSD is above the Tenkan-sen and is attempting to close above 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
The Signal From Ether’s Most Powerful Rallies
Ethereum is right up against the middle-Bollinger Band on weekly timeframes. Closing above the middle line, which is a simple moving average set at 20-periods, has led to some of the cryptocurrency’s strongest rallies. For example, in 2017, closing above it led to a 13,000% increase before a bear market started. The idea of a rally is possibly supported by a bullish crossover of the LMACD.
To truly become bullish, Ethereum must reclaim the Ichimoku cloud. However, price has already closed above the Tenkan-sen on the weekly which is a start. Interestingly, Bitcoin is still stuck below this line by comparison, while Ether is well above it.
Making it above the mid-BB could be significant | Source: ETHUSD on TradingView.com
Related Reading: WATCH: Bitcoin September To Remember: The Good, The Bad, & The Ugly | BTCUSD September 1, 2022
ETHUSD Future Forecast: A Storm Is Coming
Before we move into a more direct comparison of Bitcoin and Ethereum, the rarely used 3-week timeframe could be very telling. There are only five days left in the candle and ETHUSD has to move up from the current level or else it will close through the Ichimoku cloud.
In the past, closing through the cloud led to a large down-move and the final bottom. It…
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