Ethereum/Dollar Update – 28.12.2020
Ethereum finally showed strength and pushed above $700 from an ascending channel.
As you can see there is a new charting system in place. So before I start let me explain how you can read it.
The colored lines and dotted lines you see are actually ranges. A range consists of range high, midpoint or mid-range, and range low. The range high and range low are determined on a closing candle basis. I use quarterly, monthly, weekly, daily, and lower time frame ranges (down to one-minute ranges). The higher the time frame the more important is the marked level.
High time frame ranges:
Quarterly range: bolded purple dotted line …………
Monthly range: bolded blue dotted line ………..
Weekly range: red line for range high and low and blue line for mid-range
Low time frame ranges:
LTF range: black line for range high and low and blue line for mid-range
Everything else is in grey color (channels, important swing highs, and swing lows).
The price is at strong resistance. The purple dotted line at $735 is the quarterly range high. The second resistance is the monthly mid-range which is at around $750. The third resistance is at around $795 which is the weekly range high. The nearest HTF supports are at $670 and $587.
I expect reactions from those levels if the price gets there. A quarterly close above $735 opens the path towards $1,100.
Note: Whenever the price is range bound use its midrange as a compass. You can be bullish above the midrange and bearish below it. However, the price has to respect the boundary on a closing basis.