Market Spotlight: ETH Potential Double Bottom With Bullish Divergence
Weaker USD Boosts ETH
With USD on the backfoot following dovish comments from Fed’s Powell yesterday, risk assets have seen a wave of demand. Better risk appetite has even found its way into the ailing crypto market. Digital assets have been rocked by a slew of negative publicity over recent months which has further dampened retail interest and driven volumes lower still. However, despite the bearishness around the collapse of crypto broker FTX, digital coins are looking a little more alive this week. With a potential shift in Fed policy to start in December, the outlook is improving somewhat.
Merger Rally Yet to Materialise
Ethereum is currently testing the 1268 level, attempting to get back above, following a test of the YTD lows around 986 which are holding for now. Much was made of the merger in ETH earlier this year with many analysts and commentators calling for a sizeable rally in ETH on the back of the technological upgrade. However, that upside has yet to materialise though, while the current YTD lows hold we could be setting up a potential double bottom suggesting room for a bullish reversal near-term.
Technical Views
ETH
The market has been grinding lower since the August highs, framed by a bearish channel which took price back down to a test of the YTD lows. With these lows holding for now and with strong bullish divergence in momentum studies, it is worth noting bullish reversal risks. The key level to watch will be the 1695 level. A break of this area, and channel top, should signal a shift in sentiment putting the focus on a continuation higher.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.