Hello Traders Investors And Community, welcome to this analysis where we look at the recent events, the current price-structure, and what we can expect the next weeks and days on the weekly timeframe-basis within ethereum. Currently, the cryptocurrency market is sending a bunch of contradictory signals, as there are some which look rather bearish like litecoin or bitcoin cash there are some others like ethereum which have some good underlying support-structures in the base, this situation is playing into the theory that the cryptocurrency market is changing in a more fluid and unequal in amplitude market, it is not like the bull-market seen in 2017 where there was just everything going to ensure a stable trend with high volatility, therefore, it is important to estimate the different coins rightfully in order to profit from peculiar changes, therefore, we are looking at the weekly timeframe in ethereum.
As you can examinate when looking at my chart is that ethereum currently trades in an overall consolidation which is formed below the upper boundary restriction formed by the highs of 2019 and 2020 you can watch marked in my chart with the blue line. Furthermore, we have the 100-EMA which is holding the consolidation currently to the upside, this EMA and the falling upper boundary are forming a coherent triangular-shape together which you see marked in my chart. Such a formation as I mentioned already in previous analysis can either break to the up or downside with a higher volatility the longer the trend stays in this triangular shape, at the moment we are still in the beginning within this shape in ethereum that means the consolidation here can go on some time before making a point and finally showing the proper breakout-direction.
It is important to evaluate in this structure that we can trade the right breakout when the triangle already confirmed, this will either confirm in one of the two directions I show in my chart. Considering the bullish scenario a clear break with high volatility of the upper falling boundary will signal the confirmation of the bullish scenario and trade on the long-side can be entered after conservative after the upper boundary has confirmed be a touch of it or aggressive immediately after the breakout. Considering the bearish scenario a break of the 100-EMA to the downside with the right volatility can be traded on the short-side by an aggressive entry after this breakout has occurred or by a conservative entry, after ethereum provided a consolidation below that level and sets up to continue to the downside, traders should decide according to individual risk-preference and informational input.
For now, it is important to keep patient and wait for what the market provides us, to have a clear picture we need to confirm our given scenario accordingly in order to profit from the opportunity arising, this is what traders should prefer in such an environment as the stock-market is sending bearish signals due to upcoming corona-fears similar to those seen in march this can also affect the cryptocurrency-space as we had a similarity in amplitude within the phase-in March to April. At the moment it is not confirmed that the bull-market is completely over but it is definitely within the possible spectrum that there comes a smaller or bigger correction before moving upward when looking at the overall cryptocurrency-space environment, in order to not get surprised by such a movement we should be arranged rightfully to wage the possibilities arising in a genuine manner.
In this manner, thank you for watching, support for more market insight, and all the best! Astonishing claims require astonishing evidence in order to succeed in destiny.
Information provided is only educational and should not be used to take action in the markets.
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ANALYSIS UPDATE: ETHEREUM bounced within the range above the 100-EMA from where it could emerge with the final massive bullish breakout above the trend line.
Since then ETHEREUM continued with a great bullish expansion within the bull market zone.
@Trading-Guru, The bigger question is can the short squeeze here take out the tough resistance at 10k.. They did a great job setting up this bear trap..
Trading-Guru
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@alienteck, You're talking about BTC/USD now right? I don't quite follow yet how it relates to this idea. You mean that ETH and BTC are really likely to be correlated?