ETH formed Tower Bottom on daily and it’s expected to rally for at least several days. The inflection area 2800-2900 would determine further direction. Let’s explore the hypothesis.
Today ETH closed marginally above 8 EMA line. The next task is to close above 20 EMA and try to form a 8/20 EMA cross. The daily and minor frames indicators are supporting a rally for at least a few days.
Various measurements suggest that once ETH reaches 2800-2900, it would experience strong resistance.
- If rejected at the inflection area, expect an A-B-C path in red.
- If ETH moves above 2900 (this should be confirmed at the weekly close), there would be a good chance of a new ATH in the next few weeks.
So far, the coin is under significant bearish pressure on the monthly and weekly that is yet to be dealt with.
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The call on May 16: