ZB Market Daily: ETH & DOT technical daily analysis
ETH price rallied on Monday at 9.37% following on Sunday gain of 12.44%.
On the 27th of December, the crypto bulls broke out of a daily resistance of $664.16 which caused ETH price to print a higher high of $714.08. ETH price made a retracement for a retest of the broken resistance at the closed of the trading session.
Yesterday it was a bullish opened of the trading session of ETH. ETH started the trading session with an opened price of $684.68 with an intraday low of $680.92. ETH price made a parabolic movement to the upside as many crypto enthusiasts were optimistic for altcoins after the BTC dominance drop by 3%.
During the London trading session at 8:00 UTC, crypto bulls extended the rally to a high of $739.73. Despite the rally, traders booked for profit created a higher lows of $717.84
A weak bearish candle was printed at 12:00 UTC as the crypto bears lacked steam to pull ETH price from the previous daily high. As result of this scenario, traders loaded more long position to print an intraday high of $748.54 as spotted on the 4-hour chart below.
From 1-hour time frame perspective, ETH price consolidated and created a bullish flag. The crypto bulls steered at the daily resistance of $834 as long target in the mid-term.
More so from market indicators, such as the Money Flow index, ETH price got some level of decent accumulation level at 66.61 index which was a bullish signal to traders that leveraged on the MFI for trading bias. Consolidation took place at the upper band of the Bollinger band as a spot light for bulls to extend the rally to probable target of $834. The moving average also acted as dynamic support. ETH price created a market structure of higher highs and higher lows.
For the day ahead, crypto bulls could break the daily highs of $748.54, then ETH price will extend the rally to next daily resistance of $834.
At press time, if the crypto bulls fail to defend $727.02 support then we could have a minor correction of the rally to a low of $697.87 in the near term.
DOT price rallied 25.49% on Monday after three-day consolidation. Prior to the rally, DOT price broke out of the downtrend on 24th December and moved into consolidation phase as BTC dominance grew during this period, which slow the pace and volatility of the pair to accelerate DOT price to new high.
Yesterday, it was strong bullish opened of the trading session of DOT Price at a support of $5.10. DOT price created a fuel wick to the upside, which traders leveraged on as platform to ride on the bullish momentum to break a consolidation range bound of $5.44 at 12:00 UTC.
Due to high volume that was accumulated on the consolidation phase, the crypto bulls broke on 19th December’s resistance at $5.52, but made a retest of the broken structure and extended the rally to more record highs of $6.39.
The RSI indicator registered an uptick following a break out of the consolidation. The RSI up sloped from 48 to 74 mark in the over-bought territory as the rally got intense during the intraday session.
The Awesome Oscillator or AO also pointed to the recovery of the bullish momentum on the charts that started on the 12th to 17th of December. The bullish candles on the AO’s histogram suggested an uptick, a discovery that seemed to be in cohesive with DOT’s price action.
For the day ahead, DOT price will need to gain volume at $5.6728 price level to extend the rally to a new high. The crypto bulls will need to wrestle with the bears at $6.40. This will be a big challenge for the crypto bulls to win since this is a major hurdle that was printed from 25th august to 4th September that prevents the continuation of the uptrend.
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