- ETH/USD rose above 0.338 and gave a bullish signal in Asian timezone.
- Ethereum looks at Constantinople, the other actors look beyond.
- XRP is a little behind but can explode above $0.335.
The European trading week kicks off with good news for crypto asset holders. After months of seeing the value of their investment fall, with prices locked into bearish structures, the situation has changed.
In the last few hours, important resistances have been overcome and cryptos consolidated current levels. The market will enter an entirely new phase now.
I don't mean that we have already entered a fully bullish phase. After so many months of falls, things are not going to be that simple, but we are entering a period where prices lose their full bearish tone.
The movement is being led by Ethereum, as I mentioned in previous articles, and the bullish signal has been given by the ETH/BTC pair when exceeding the price level of 0.03438 ETH/BTC.
The charts in the daily range confirm the breaks, in the absence of confirmation at today's close and the pullback of the next few hours. Those indicated in the same term show a long-term bullish development profile, especially in the DMI. According to the development patterns of this indicator, the bulls accelerate and initiate an upward trajectory that will drag the ADX and reinforce the movement. On the other hand, the bears withdraw quickly and are about to visit levels not seen since December 2017.
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3,706 price level. Early in the Asian session, it broke the trend line towards the downward channel ceiling from late November and a bit later also exceeded the congestion resistance of the price at $3,690.
Above the current price, the first target price is at $3,900 (price congestion resistance), the second at $4,050 (price congestion resistance) and the third at $4,200 (price congestion resistance). I want to point out that the moving averages on the 4-hour chart all move below the price and thanks to today's rise with prominent bullish profiles.
As I mentioned in the introduction, the new scenario is not going to be a bullish walk but the fight between bears and bulls is going to be active, and volatility is going to increase. That's why I expect a possible violent downward movement at any time. These movements will not consolidate.
Below the current price, the first support level is at $3,690 (price congestion support), the second at $3,640 (down channel roof) and the third at $3,600 (price congestion support). Moving averages to watch are $3,580 (EMA50), $3,525 (EMA200) and $3,526 (SMA100).
The MACD on the 4-hour chart goes bullish from an utterly flat situation. This type of movement usually starts with doubts since it is effortless to turn it over, but if it consolidates, it becomes a compelling bullish signal.
The DMI on the 4-hour chart shows a fully bullish profile. Bulls follow a classic pattern, leaning on the ADX as both indicators move higher. A negative point in the high level has been reached by the buyer side, something that can trigger a technical pullback. Bears, on the other hand, fall to minimum levels not seen in months.
ETH/USD 240 Minute Chart
ETH/USD is currently trading at the price level of $138.77, after hitting the relative high at the price level of $140.
The first bullish target is at $142.50 (price congestion resistance), the second at $150.20 (price congestion resistance) and the third awaits at $161.50 (price congestion resistance).
Below the current price, and in anticipation of possible pullbacks, the first support level is at the $130.80 price level. The second support level is at $123.55 (EMA50). The third support level is solid, at $115 (SMA100, SMA200 and price congestion support).
The MACD on the 4-hour chart shows a bullish profile without concessions. It does not have the limitations seen in the BTC/USD pair, although it can provoke some technical pullback due to its extreme position concerning what we have seen in the last months.
The DMI shows a similar profile to the one seen in the BTC/USD although the pattern concerning the ADX is the opposite. The bulls are following the ADX from below without overcoming it, a less powerful structure than the previous one. The bears replicate what was seen in Bitcoin and fall to low levels not seen in months.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.312 price level. The level reached will not attract anyone's attention, but they should pay attention to the breakage of all moving averages. Now the price has removed those obstacles and turned them into supports.
The XRP/USD has a first bullish target at $0.317 (price congestion resistance), the second bullish target at $0.329 (price congestion resistance) and the third at $0.335 (price congestion resistance). Above this level, the XRP/USD can fly higher.
Below the current price, the XRP presents less risk of technical pullbacks, mainly because it has moved little to the upside. The first support level is $0.308 (SMA200 and price congestion support). The second support level is $0.303 (SMA100 and EMA50) while the third support level is $0.29 (price congestion support).
The MACD on the 4-hour chart shows a bullish momentum but weak. It is a fragile figure at the moment although being in the initial stages, in case of a downward turn it would not be very aggressive.
The DMI on the 4-hour chart shows all the aggressiveness that the MACD does not show. Bulls shoot upwards without complexes, getting a massive advantage over bears. These, on the other hand, are going to lows and by the looks of it, for an extended period.
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