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Ethereum (ETH)
Above: Ethereum (ETHUSD)
I don’t want to get into the news or fundamentals of what is going on with Ethereum’s network – as an old school technical analyst, that stuff doesn’t factor into my work. What does factor into my work is price, time, and volume. Ethereum’s had one heck of a bullish move during Wednesday’s trade session, moving more than double digit percent moves at various time. At the time of writing this article, Ethereum is trading up over +9.12%. Within the Ichimoku chart and analysis, it’s a very bullish looking chart with the current daily candlestick above the Cloud and the Tenkan-Sen moving above the Cloud. Future Span A is above Future Span B and the Chikou Span is above the candlesticks. But there are two primary resistance zones I see ahead. The first resistance zone is represented by the blue horizontal bar on the chart. That blue bar contains Senkou Span B, the 161.8% Fibonacci Extension and the 78.6% Fibonacci Retracement all within the $3,000 price range (which, by itself is a strong psychological number). The Fibonacci levels and Senkou Span B should be enough to halt price temporarily, but it Ethereum might blast right through. Why? The volume profile is extremely thing beginning at $2,950 and doesn’t thicken up again until the second identified resistance zone. The second resistance zone is identified by the red bar at the $3,450 value area. This area contains the high of the strong bar of the swing and the 200% Fibonacci Extension. If Ethereum blasts through $3,000, then expect to see some pressure at $3,450. Near term support exists below between $2,200 and $2,300.
Polkadot (DOT)
Above: Polkadot (DOTUSD)
Polkadot, like many cryptocurrencies this week, is experiencing a big push higher. Between Sunday (August 1st, 2021) and today, Polkadot has pushed and closed above its 2021 VPOC at $16.81, retested the break and then move higher. Polkadot is currently inside the Cloud – which is a bad place to be due to volatility and indecision. Near term resistance for Polkadot is in the $23.00 value area. The $23.00 zone contains the 38.2% Fibonacci Retracement and $23.6% Fibonacci Extension. Additionally, the top of the Cloud (Senkou Span B) is within the $23.00 value area. The move here for Polkadot is strong and shows some evidence that it could sustain a move higher. The Tenkan-Sen is above the Kijun-Sen and Polkadot is trading above both of those levels. Future Span A remains below Future Span B, but Span B is flat while Span A is sloping up. And finally, the Lagging Span is above the candlesticks. The only major condition that I am waiting on for a confirmed new bullish drive is Polkadot closing above the candlesticks, which becomes a lower price level every day for the next nine trading days. We will definitely want to watch how it responds to any macro economic events in the future, especially if there are any hints towards major governments shutting down due to the Delta variant of the Covid-19 virus.
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