Polkadot (DOT) And Ethereum (ETH)

Polkadot (DOT) and Ethereum (ETH) price levels that need to be reached for bulls and bears to maintain control

Polkadot (DOTUSD)


Above: Polkadot (DOTUSD)

Polkadot’s chart, at first glance, looks as if there are imminent bullish conditions ahead. One glance shows that every condition needed to be met to confirm a clear bullish trend coming for Polkadot is not far away. However, two warning signs suggest the most recent bounce is merely a dead-cat bounce and that the bears are about to take over and shove DOT lower. The first warning sign is the incomplete but developing head and shoulders pattern. The second warning is the position and slope of the Chikou Span. While the Chikou Span is above the candlesticks, its slope is at an angle that suggests a quick move lower is coming.

Additionally, the Chikou Span is not in open space (it will intercept future candlesticks at its present value). Thus, the target for the bears is the $22 value area, followed by the 161.8% Fibonacci expansion and 2021 Volume-Point-Of-Control for 2021 at $17. For bulls to take over, they will need to rally Polkadot higher to a level where the Chikou Span is in clear and open space. That will occur if DOT closes above $36.

Ethereum (ETHUSD)


Above: Ethereum (ETHUSD)

banner Ethereum’s current price action is between two strong support and resistance levels. At the time of writing (2200 EST), Ethereum is trading at $3,100. Just above at $3,168 is the daily Kijun-Sen and just below the top of the Cloud (Senkou Span A) at $3,080. If traders needed any more price levels to show a make or break zone, then the 50% Fibonacci expansion could be included because it’s at $3,117. Bears currently remain in control and are favored to continue pushing Ethereum lower. With the Chikou Span below the candlesticks, the outlook is overwhelmingly bearish. The target zone for bears is the $2,200 value area where the 61.8% Fibonacci retracement and 161.8% Fibonacci expansion exist.

Bull could easily take control of this market by pushing Ethereum’s price back above Senkou Span, the Tenkan-Sen, and the Kijun-Sen. Ultimately, however, bulls need to close Ethereum at a level where the Chikou Span will be above the candlesticks. Thus, even if bulls were to push Ethereum to $3,500, bulls would need to push even higher, towards $3,900 to keep the Chikou Span in open space. However, if that occurs, then new all-time highs are likely in the cards.


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