In technical analysis , flexibility is essential.

In Ethereum , we are going to switch the time frame to a daily chart . By doing so, it allows us to look at the 200-day moving average. In equities and bigger asset classes, the 200-day moving average can be significant. Catching a burst above the 200-day can help you get on board with a major uptrend. Looking closely at the 200-DMA in ETH has done two things. First, it has broken above the 200-day near 206. Second, ETH has retested the 200-dma earlier this morning.

Bottom Line: The fact that ETH has retested the 200-DMA and bounced, leads us to believe a move to 240 is in the works. If ETH moves above 240, then you can say a significant bottom is in, and a massive up move is starting.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.