Daily ETH Update

29 Nov 2021

Caution Still Required - ETH has been moving in the right direction for the past few days, but it hasn't been easy. Price has been grinding upward and on low volume. On the bullish side of the equation RSI, OBV and ADX are all pointing in the right direction, and we have a demand zone just below us at the $4200-4300 level. On the bearish side, price has hit resistance at the short term downtrend line. Most concerning is the low volume attached to this move up (below average). We needed to see price break above the short term downtrend line and for the move to be supported by more buyers (volume). Until we see buyers entering on more significant volume this could all reverse at any time. There is also ample opportunity for those who might like to manipulate the market to party here, so we could see some wicks down to scoop up liquidity at lower levels. If we do see a break of this trendline I would be expecting the move to take us up to the previous level of supply at around $4600-4700.