Top Down Analysis Of ETHUSDT Using Support And Resistance Strategy And RSI Indicator As Confluence

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Hello great minds,

It is a great opportunity to come before you all today to share my technical analysis on eth against usdt.

I believe you are all doing perfectly well and are enjoying your activities in the community as you actively promote steemit across various social media platform.

Ethereum is a very big cryptocurrency in the cryptospace and we are well aware of this.

Ethereum happens to be the second most biggest and popular cryptocurrency in the cryptospace.

After Bitcoin which is the driver of all other tokens, ethereum is known to be the next most valuable token, and I am here to share my analysis to it.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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I begin my technical analysis from the higher timeframe, then I descend to the lower timeframe

On the higher timeframe, ideally the monthly timeframe, I seek to determine market trend

The monthly timeframe helps to eliminate market noise from the market and also compress the market to one screen.

And from this, it becomes very easy for the market trend to be predicted.

The screenshot above is that of the pair ethusdt on the monthly timeframe.

And as seen above, there are lesser candles on this timeframe and this is as a result of the time it takes for one of this candles to be formed.

On the monthly timeframe, it takes the time period of 1month for each candle to be formed.

And also, it is easy for the overall trend of the market to be detected on this timeframe, as we can see that the market is being bearish.

And moving to the weekly timeframe, I could see the market more clearly, I could see more candles as each candle is being formed within the trading period of 7days.

And looking carefully, I was able to identify a key level and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.

And looking carefully at the screenshot above, I can see the validity of this level as the market has made several touches on this level, and we can see noticeable reactions when the market trades towards this level.

I then continued my analysis by moving to the daily timeframe, and on this timeframe, I could see the market more clearly, I could see the formation of bullish and bearish candles which shows the presence of the buyers and sellers in the market.

And looking carefully, I was able to identify another key level, and this level is functioning as a resistance level to to the price chart, and the market is expected to be rejected whenever it trades towards its resistance level.

And looking carefully, I could see that the market has made several touches on this resistance level, and has been unable to break above it, which shows the validity of the resistance level.

I then moved to the 4hr timeframe, and on this timeframe, I could see series of noise in the market as the buyers and sellers are struggling to drive the price chart to their preferred direction.

And looking carefully I realised that the bears have been in control of the market as the market has been forming series of bearish nicest, until it traded towards its resistance level.

And from the above screenshot, we can see that the bulls have began to take control of the market, and we can also see that the market has broken above a minor resistance level.

I then decided to move to the 2hr timeframe in search of my entry into the market, and on this timeframe, I could see that the market has broken above a minor resistance level, and I expect to see a bearish retracement of the market towards this broken resistance level.

And before placing my entry, I decided to search for confluence using the relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The relative strength index indicator is an indicator that helps to identify overbought and oversold market.

When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.

An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.

I then applied the rsi to the monthly timeframe and on this timeframe, I could see that the market is oversold, and an oversold market can be detected when the rsi crosses below its 20% line.

An oversold market is also understood to be a market condition that signals a bullish trend reversal of the market, that is, a change in market strength from sellers to buyers.

Getting to the daily timeframe, I could see that the market is being overbought, and this is detected when the rsi crosses above its 80% line.

And when this happens, the market can be said to signal a bearish trend reversal, and from the above screenshot, we can see that the market is expected to be retrace inorder to retest its broken resistance level.

And with my bullish bias of the market, I decided to move to the 2hr timeframe in search of entry into the market.

On this timeframe, I decided to place my entry on the closest support level to the price chart and my take profit was placed on the closest resistance level to the market price.

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CONCLUSION

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I have shared my analysis on ethusdt beginning from the monthly to the weekly to the daily and to the hourly.

From my analysis, I expect to see a bullish move on ethusdt.