TL:DR
- ETH/USDT has broken through the $600 mark in a strong rally.
- Trading volume supported the rally, with a 26.37% increase compared to yesterday’s volume.
- Volatility continues to remain high, with consilidation or a correction needed before the next leg up.
Overview (24-hour).
ETH/USDT opened this trading period at 530.00 USD on the dot, before rallying to set a new high of 606.35 USD (+14.4%). The low of this period was 529.99 USD, only 1 cent below the open. At the time of writing, ETH/USDT has settled at 592.90 USD, 4.23% above the period’s high-low average of 568.17 USD.
The total trading volume for ETH/USDT in this period was 1,869,000 ETH, compared to 1,479,000 ETH in the previous period, representing a 26.37% increase.
The Historical Volatility Index (HVI) also increased to 77.90 this trading period, compared to 74.15 in the last.
Price Analysis
ETH/USDT opened today’s trading period at 530.00 USD and immediately began another attempt to break through the 600 USD mark. Its first attempt saw the price hit 580.88 USD (+9.6%) before correcting briefly to 550.20 USD. After that move, ETH/USDT successfully rallied to set a high of 606.35 USD for the period, finally breaking the 600 USD mark.
At the time of writing, the price has currently settled at 592.20 USD.
Volume Analysis
ETH/USDT opened this trading period with a trading volume of 13,263 ETH with a mean value of 35,201 ETH carried over from the last period. Trading volume then immediately spiked to 54,334 ETH, supporting the first attempted rally to the $600 mark. This brought the mean value up slightly to 36, 345 ETH. The mean value continued to remain consistent throughout the trading period, before shooting up to 69,800 ETH at the time of writing, in support of the successful rally which established the trading period’s high. The mean value was brought up to 50,062 ETG shortly thereafter.
The On Balance Volume (OBV) and Accumulation/Distribution (Acc/Distr) indicators saw an uncharacteristic divergence during this period. OBV peaked on ETH/USDT’s first attempt at $600 before sharply dipping. It then resumed an increase during the successful breakout but held at its previous peak. There has been no overall trend in OBC this period, whereas, Acc/Distr has continued to trend upwards this period, with a sharp spike as ETH/USDT hit $600.
Volatility Analysis
In this period, volatility has remained high, with HVI opening at 15.12 (extremely high) and then rising to 20.17 (extremely high). HVI then oscillated between 20.17 and the periods low of 13.37 (high) for the duration of ETH/USDT’s rally to the $600. At the time of writing, the HVI has remained high, currently at 20.25.
Price prediction
In this trading period, trading volume carried ETH/USDT’s rally to $600, increasing consistently throughout the entire period. Acc/Distr also showed that momentum increases as ETH/USDT closed in on $600.
However, OBV saw no positive trend during the same period, suggesting the existence of a substantial amount of selling pressure during this rally. This is also borne out by the fact that volatility remained in the extremely high zone for the duration of this period.
Given those facts, ETH/USDT is in need of either consolidation or a brief correction if it is to resume a strong rally.
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