empty
18.05.2021 09:33 AM
Ethereum volume analysis for May 18, 2021

This image is no longer relevant

1. Analysis of ETHUSDT volume on Binance exchange.

2. Long-term trend analysis.

3. Medium-term trend analysis.

4. Short-term trend analysis.

5. Japanese candlestick analysis.

6. Conclusions.

7. Statistics.

1. Analysis of ETHUSDT volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. The analysis is based on the footprint-profile theory. According to it, the movement of the level with the highest traded volume during the day can indicate a possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

16.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 3490

17.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 3243

The POC has moved down, and the price is above the POC level. The market is moving sideways, so you can open both long and short positions.

2. Long-term trend analysis.

A trend is the trader's friend. Many market participants know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

  • long-term;
  • medium-term;
  • short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be opened on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48) - an exponential moving average with a period of 48. If the daily candlestick closes above the EMA(48), this will mean that the quotes are moving in an uptrend and we should open long positions. If the daily candlestick closes below the EMA(48), this will mean that the quotes are trading downwards and we should go short.

This image is no longer relevant

The price is above the EMA(48). The long-term trend is upward. Therefore, it is worth considering long positions.

3. Medium-term trend analysis.

In this analysis, the medium-term trend is a trend on the four-hour chart (H4). The EMA(48), an exponential moving average with a period of 48, will also be used in analysis. If the candlestick closes above the EMA(48) on H4, this means that the quotes are moving in an uptrend and we should buy. If the candlestick closes below the EMA(48) on H4, this means that we have a downtrend and we should sell.

This image is no longer relevant

The price is below the EMA(48). The medium-term trend is downward. Therefore, it is possible to open sell orders.

4. Short-term trend analysis.

The short-term trend in this analysis is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA(48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA(48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA(48) on H1, this indicates that the trend is downward and we should go short.

This image is no longer relevant

The price is in line with the EMA(48). The short-term trend is sideways. Therefore, traders can open both long and short positions. The long-term, medium-term, and short-term trends do not coincide.

5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.

This image is no longer relevant

The daily candlestick closed upwards, the candlestick is white. The low is below the low of the previous candlestick. The candlestick pattern is Doji, with a small body and long shadows. According to the candlestick analysis, it is possible to open both long and short positions.

6. Conclusions.

Volume analysis - BUY SELL.

Long-term trend - BUY.

Medium-term trend - SELL.

Short-term trend - BUY SELL.

Japanese candlestick analysis - BUY SELL.

Conclusion: On May 18, you can open both long and short positions as different types of analysis provide different forecasts.

7. Statistics.

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Gains for three months amounted to 9%, with a maximum drawdown of 4.88%. Statement:

This image is no longer relevant

We do not open new positions on Ethereum as the situation in the market is uncertain.

The risk is 1% per trade. Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!

Maxim Petrov,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Maxim Petrov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on August 18

Bitcoin started the new week with an active decline toward 115,000. Following the weekend, with no significant buying in the cryptocurrency market and Bitcoin failing to consolidate above 118,000, traders

Miroslaw Bawulski 09:18 2025-08-18 UTC+2

Major players fix huge profits in crypto market

Yesterday, Bitcoin and Ether saw a sharp drop in the second half of the day, but these losses were gradually bought back, halting what was likely a large-scale sell-off triggered

Jakub Novak 10:30 2025-08-15 UTC+2

Trading Recommendations for the Cryptocurrency Market on August 15

Bitcoin, after updating its all-time high, then declined sharply during U.S. trading, holding near the 117,100 level, below which it must not fall, as that would significantly harm the ongoing

Miroslaw Bawulski 08:57 2025-08-15 UTC+2

Solana is attempting to break above its pivot level today. Friday, August 15, 2025.

[Solana] – [Friday, August 15, 2025] With the EMA (50) and EMA(200) condition crossing with a Golden Cross, and the RSI (14) at a neutral bullish level, Solana is high

Arief Makmur 07:00 2025-08-15 UTC+2

Filecoin has the potential to weaken and fall to its nearest support level. Friday, August 15, 2025.

[Filecoin] – [Friday, August 15, 2025] With the RSI(14) in the Neutral-Bearish area and the EMA(50) below the EMA(200) (intersecting a Death Cross), there is a high probability of Filecoin

Arief Makmur 06:50 2025-08-15 UTC+2

Trading tips for crypto market on August 14 (North American session)

Bitcoin slipped from its "pedestal" and is now trading around $121,600. The clear absence of a large buyer, seen yesterday, opens the door for a deeper correction in the leading

Miroslaw Bawulski 16:26 2025-08-14 UTC+2

Big players' money brings Ethereum closer to its all-time high

Over the past week, spot ETH exchange-traded funds have seen record demand, including a $1 billion inflow in a single day. Meanwhile, recent policy changes—from the White House opening 401(k)

Jakub Novak 15:45 2025-08-14 UTC+2

Ethereum one step away from updating all-time high

Ethereum made strong gains yesterday, stopping just one step short of refreshing its all-time high, touching the 4,785 mark. Bitcoin, on the other hand, despite all challenges, managed to break

Jakub Novak 10:29 2025-08-14 UTC+2

Trading Recommendations for the Cryptocurrency Market on August 14

Bitcoin has reached a new all-time high, while Ethereum narrowly missed achieving the same milestone. In the past 24 hours, Bitcoin has increased by 3.17% and is currently trading

Miroslaw Bawulski 08:58 2025-08-14 UTC+2

One more step in developing decentralized crypto apps

Bitcoin is holding up quite well, even around the $120,000 mark, which keeps the chances of further growth alive, with a move toward $126,000 possible in the coming days. Ether

Jakub Novak 14:56 2025-08-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.