Episode 23 Ethereum and NEO Technical Analysis (Divergence found on NEO! Check it out!)

in cryptocurrency •  7 months ago

Hello Everyone! Happy Saturday!

I hope everyone is having an awesome weekend so far, here is your daily dose of Technical Analysis on Ethereum and NEO!


Disclaimer: This is not financial advice


Ethereum Technical Analysis

ETH has been in a bear trend on the daily charts for the past couple of months after reaching ATH's in the 1500-1600 dollar range. Since then it has retraced into the 78.6 fib level, after we made a higher low but proceeded to have a decent sell off in accordance with the overall daily bear trend. The LOG scale is an excellent indicator on this one. We have yet to have a candlestick close on GDAX below the 680$ level so watch for that on the daily, we do have support coming in at the 650$ level as well when it comes to wicks so those are the two key levels that I am personally watching.The latest area of support is in accordance with the 200EMA as well.

As for the resistance I am watching the overall trendline on the Linear scale because it has tighted right up as of today and if that breaks up the next big level to watch will be the LOG overall trend. If we break down the next level of support should come in at the 550$ area.

Everything I've spoken about above can be found in greater detail on the lower time frames, the only difference is we have had a close below the 650$ level on the lower time frames due to in my opinion the panic sell off we had coming down. Other than that the levels to watch down to the 4h continue to be described above. Watch for a close above or below those levels with corresponding volume coming in to back up the position.

For ichimoku on the daily we found support in the previous weeks at the bottom of the kumo cloud, that has however since broken down. The kumo cloud has been getting tighter and tighter moving its way towards a bearish twist. After that everything on the daily will have been reset. Lagging span is now below price and the cloud, we've had our TK/Kijun cross and we are almost fully bearish according to the Ichimoku on the daily.

One the 12h for Ichimoku we are bearish all around. Lagging span is below price and cloud, we've had our bearish TK/Kijun cross, and the cloud itself is bearish.

One the 4h we are bearish all around as well. We are a fair bit away from the kumo cloud and have been following Tenkan down nicely violating from time to time but overall staying consistent with the bounces moving lower. We've had our cross, and lagging span is well below price and the cloud.

The RSI has been making its way lower with price, there was a general support speculative trend (two touches) that was just broken and then immediately retested as resistance and it as since broken down. We now have to make it back above that on the RSI as well as the general upper resistance and the 50 to be considered bullish again. As always with the RSI watch for divergence to come in.


NEO Technical Analysis

For NEO/BTC we had a bit of a symmetrical triangle forming which ended up breaking down. The price then proceeded to move upwards to do the usual retest of the previous support now turned resistance on Mar/04/18. After that it took a bit of a dump lower but found support right at the 100EMA level on the daily, this is also in accordance with the bottom support level of the Kumo cloud on the 12h. We have a little more support with the bottom of the kumo cloud on the daily at the 845,000 satoshi range if this current level breaks. Watch for this level that NEO is at to either break or hold, we have formed a bit of a bearish penant that if holds true will break to the lower side. Price predictions can then be found using indicators like the pattern playing out itself to lower fib levels like the 61.8 or the 200MA.

The RSI is where it gets interesting here, we have on the 12h and lower, a solid amout of divergence that has formed since March fifth. The price has been making lower lows while the RSI has actually been making higher lows, so something to watch. I found it to be most prominent on the 4h but it can also be seen on the 12h as well. Watch for that to play out as that is a decent bullish indicator. That being said seeing it on the daily would be a much nicer signal.

For Ichimoku on the daily, we're kinda in no mans land sitting in the middle of the cloud. Tenkan and Kijun are just about to cross from the looks of it and lagging span is below price but no in the cloud yet. Look for support at your cloud edges with a potential bounce or breakdown play.

On the 12h we have bounced off the bottom of the cloud so go for a potential bounce play or breakdown.Kijun is above Tenkan so that is bearish, lagging span is in the cloud and the cloud is just about to twist to bearish so the signs are saying chances are we'll have a breakdown.

On the 4h we have broken down quite a ways from the Kumo cloud essentially following Tenkan all the way down. All indicators are currently bearish so watch for NEO to make a decicisioon on the other time frames first when it comes to this one. The only play currently is a close above Tenkan could indicate bullish momentum to the upside or a bounce off of TK downward would show more bearish momentum as we are fighting around that indicator right now. So really watch for the price to tighten up and then in the next day or two break to the upside or downside with corresponding volume.


As always wait for confirmation and play accordingly.

I do hope you all enjoyed it, by all means all comments and suggestions are welcome! I do hope I'm helping you make some money!



Have an awesome day everyone!


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