Ethereum Clears Resistance
I added to my position in Ethereum today as it cleared the critical resistance level of $3,700. I started buying Ethereum this June and added to my position in early October as it found support at the 200-day moving average. When looking at the weekly chart, there are a few things that really catch my eye. First, I really like the consistent support at the 40-week line, which indicates the long-term trend is still in effect. More recently, we have seen closes above the 10-week moving average which is another bullish sign for the second largest cryptocurrency by market cap. Finally, Bitcoin continues to act really well after breaking out on volume in early October. This is an excellent sign for Ethereum and cryptocurrencies on the whole. I have a stop loss in place to limit my risk on this trade. Let's hope the strong trends in Ethereum and Bitcoin continue into 2022.
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Full Disclosure: I currently own Ethereum and Bitcoin.
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