Cryptosoft Course Analysis – Life after the Token Sale

At the end of the DAO Token sale the Ethereum course went down quite a bit. Since May 28th the price has risen slightly and is currently at 11.20EUR (12.47 USD).

Cryptosoft Summary:

At the beginning of the week Cryptosoft fell to 9.43 EUR (10.50 USD). On 28 May Cryptosoft recovered slightly to 11.20EUR (12.47 USD). Currently, the Ethereum price is going through a flat triangle pattern where a breakout is imminent or may already have begun.

Bulls take a breather

Well, the support was undercut and Ethereum obeyed on the word: He falls first properly into the cellar. On May 26th and May 27th the cops try timidly to break this downtrend – which was only achieved at the end of the DAO Token Sale. Since then the price has risen gently. So the bulls took a breather until 28 May. And as gently as the price rose compared to the previous week, apparently rightly so.

Perhaps an overinterpretation, but the pattern since 28 May has the character of a very flat triangle pattern. If this were so, it would currently look as if the triangle pattern is being broken upwards – which would suggest a stronger rise. But be careful – as the pattern is very flat the breakout to the bottom is still possible. I would set an alert on the current EMA100; if this support line is broken, it would be a sign for a downtrend.

Similarly “cautiously optimistic” is the MACD: it is currently positive. Furthermore, the MACD line (blue) and signal (orange) are fighting for the upper hand in the last few days. Currently one had just a bullish crossover, which speaks for a short-term upward trend. But beware: since May 28th, i.e. since the abrupt rise, both the MACD-line and the signal are decreasing.

After the MACD (second panel from above) was strongly positive until May 20th, it has been strongly negative since then and at best weakly positive since then. Currently, the MACD is negative – suggesting a negative correction in the nearest future.

Nevertheless, the RSI is positive overall: since May 28th the RSI is above 50 and thus bullish.

Finally, the Accumulation/Distribution-Chart also speaks for a further rising price for the time being. Since May 28th, the buyers predominate – which suggests that the price continues to rise.

So you can expect a rising price even after the DAO Token Sale. But the background could still be the DAO token, after all some Exchanges have already implemented the purchase and sale of DAO tokens (About the DAO token sale and what happens next is written elsewhere).