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 ethusdt on the monthly timeframe, and as seen above, there are several candlestick on the chart.

Each of these candlestick were formed within the range of one month.

And from the screenshot above, the market can be said to be recovering from a bearish move, but to proper understand its movement, I have decided to check other timeframes.

I then moved to the weekly timeframe, where I saw more market activities.

On this timeframe, I saw more candlestick as each were formed within the space of 1week.

As seen above, I was able to detect some key levels on the price chart, and this levels are acting as strong resistance level to the price chart.

This level is seen as a strong level because it has previously rejected market price and it is expected that whenever the market gets to this level again, it gets rejected to the downside.

Moving to the daily timeframe, I could see more market activities.

I could see more noise in the market and I could see that the price is approaching this key level in the market.

And with this, I expect to see a rejection in the market price as it gets to this level.

Upon seeing this rejection, I intend to join the market to the downside, that is, I intend to take a sell order.

Then I continued my analysis by moving to the 4hr timeframe, and on this timeframe, I can see so much market noise, which consist of fakeouts move etc.

Then I looked carefully and was able to spot a valid support level in the market.

When the market begins it's bearish move, I expect to see the market drop to this level before it continues it's bullish move.

With this, I moved to the 2hr timeframe in search of an entry into the market.

Moving to the 2hr timeframe, I can see the rejection candle I have earlier searched for.

Seeing this rejection candle, I bearish bias was confirmed and I intended joining the market from this rejection.

And before doing so, I decided to check for a confluence to my trade 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.

As usual, I began using the rsi indicator from the monthly timeframe.

From the screenshot above, we can see that the rsi Indicator has crossed above the 80% level, and this is an indication that the market is overbought.

An overbought market is a signal for a bearish trend reversal, this implies that we expect the market to embark on a bearish move, just as it was predicted using the support and resistance strategy.

Moving to the weekly timeframe also, I noticed the same signal.

I noticed that the market is being overbought and this is a bearish trend reversal signal.

And it is in allignment with the analysis using support and resistance strategy, then I moved to the 2hr timeframe in search of entry.

Applying the rsi on the 2hr timeframe also, I noticed that the market is being overbought just as other timeframe signified.

Then I entered a sell order based on the rejection candle from the resistance level.

And I placed my take profit on the closest support 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.