Looking for technical patterns in the market is the best way to cash in on potential profits. Ethereum is in a unique situation at the moment. Unlike Bitcoin, ETH is not sitting at it’s all time high. I saw this as a great opportunity because it gives ETH more growth potential in the near future.
The best technical analysis strategy is to look at a situation and think about what most people will do. ETH is currently in a situation where a lot of people might start jumping on board to push it near $400.
I started off my analysis by drawing a resistance line and a positive trend line. The resistance line shows the price point that ETH has to break in order for it to breakout. The positive trend shows that ETH is currently in a bull market.
The bull market could continue until it hits the resistance of $400. Those two lines and the growth potential made ETH stand out to me as a great coin to profit from.
Ethereum Growth Potential
Growth potential comes down to a few different factors. The RSI is an indicator that helps determine if a coin is overbought or oversold. I used the RSI in this situation to figure out if ETH had upside potential. After looking at the RSI, I decided to look at the MACD to further my indicator analysis.
The MACD currently says that ETH is starting a negative trend. I personally think that this is a false negative because of how weak it is.