ETH/USDT Trend Analysis: strong rally towards 550 USD
3 min readTable of Contents
TL:DR Breakdown
- Ethereum (ETH) has made a strong rally toward 550 USD, with trading volume in support.
- A new support zone has been established between 508.79 USD and 502.59 USD.
- If trading volume continues to rise, expect Ethereum to set new highs.
Overview (48-hour)
ETH/USDT opened trading at 477.83 USD, with a high of 547.33 USD (+14.54%) and a low of 468.63 USD. At the time of writing, ETH/USDT has risen again to 535.38 USD (+12.04%), sitting 5.39% above the high/low average of 507.98 USD.
The total trading volume for ETH/USDT up until the time of writing is 1,369,000 ETH, compared to 1,516,000 ETH for the same period yesterday, representing an increase in trading volume of 10.74%.
The historical Volatility Index (HVI) on the 1D reads 68.39 (medium) at the time of writing compared to 64.62 on yesterday’s close.
Price Analysis
ETH/USDT began the trading period briefly falling 1.93% from open to its low of 468.63 USD. This preceded a strong rally which established a new support zone between 508.79 USD and 502.59 USD and set a new high at 547.33 USD. ETH/USDT then settled at 547.33, the price at the time of writing.
Volume Analysis
Trading volume for ETH/USDT opened at 20,069 ETH, with a mean value of 23,427 ETH from the previous period. Trading volume dropped to a low of 4,227 in correspondence with the slight decline in price, with the mean value dropping to 15,515 ETH.
This preceded a strong spike in trading volume which supported ETH/USDT’s rally to its high. Trading volume spiked to 99,763 ETH (see blue tick on chart above) and stayed relatively high to help form the new support zone. A second spike in volume (see green tick on chart above) supported the second rally from that support zone to the period’s high, bringing mean trading volume up to 45,551 ETH.
During this period both OBV and Acc/Distr seemed to confirm that the spikes in trading volume provided some momentum to ETH/USDT (see white circles on chart above and both indicators continue to trend upwards at the time of writing.
Volatility Analysis
HVI stayed low at the opening of this period, opeing at 6.84 (medium) and falling to a low of 4.68 (low). Following, ETH/USDT’s breakout, HVI began to rise, hitting a high of 15.77 (extremely high), spending most of the asset’s rally in either the high or medium zone. At the time of writing, HVI has settled at 11.97 (high).
Prediction
ETH/USDT has been trading with a high level of volatility over the period and, as it stands, that volatility does not seem to be going anywhere. However, two spikes in trading volume have provided ETH/USDT with some momentum, although given the volatility, another injection may be needed to continue to support the rally.
Taken together, ETH/USDT is likely to move sideways in the immediate future, with the newly established support zone level in play. Any new rally will need a fresh injection of trading volume.
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