Ethereum, Formation Which Can Unfold The Crucial Contemplation!

Hello Traders Investors And Community, welcome to this update-analysis about the cryptocurrency market and ethereum which is beside bitcoin the second largest and building up a big part in market-cap therefore we are looking at recent events, the importance of the current formation building and what to anticipate of it the next times in order to take appropriate action and be prepared in schedule, as I mentioned in previous analysis bitcoin is trading in this big triangle where it is showing several phases and a possible breakout ahead, I spotted these market cycle phases also in ethereum although it is providing a way other formation than bitcoin, there are some differences and some similarities but a fact is that both trading in a diminished low volatile period were a period with high volatility and increased spread will follow.

When examining the chart you can watch that ethereum is similarly to bitcoin moving in the near of the upper boundary but in the case of ethereum it is the upper boundary of its big broadening wedge formation forming. Furthermore, it provided already two successive distribution phases and two accumulation phases in the accumulation and distribution which building up coherently with the upper and lower boundary of ethereums broadening wedge. When an accumulation phase ends a new markup begins where the price shows expansion and when a distribution ends a markdown follows where price show decline. Such is the case also in ethereum here with a slight different because of the broadening wedge where the next and final accumulation can take place at the important 61.8% Fibonacci-support which is a meaningful support base in this structure.

Ethereum currently trades in distribution and also near resistance a decline can follow to lower levels till another accumulation and a followed markup begins, taking these facts into consideration there are some possible scenarios how this can play out till the final confirmation takes place with a volatile break of the higher boundary as you can watch it in my chart. It is highly likely that when ethereum shows decline and confirms the third major distribution phase it can confirm support at the stong 61.8% Fibonacci-support from where it can bounce and form the final markup which will also confirm the broadening wedge formation it is trading in, therefore ethereum needs to show healthy upmoves in this range and do not fall back to lower levels again when this does not happen the formation has a decent chance to confirm properly and activate further targets.

As ethereum and bitcoin are the major currencies taking a huge place in the whole market cap this formation will be the crucial factor in the further development and succession of the overall market, remember that the confirmation scenarios have to succeed rightfully before that there is no evidenced example for the further development, therefore it is important to keep patient and wait for the right confirmation before taking the next developments into consideration as it is easy to think the market just will go in the proper direction it can also play out fatal when no concrete evidence and confirmation has occurred, this is the means of successful trading to do not get caught up in the speculative approach seen to often these times and take also the reverse perspective to do not get overwhelmed of the market conditions showing up especially in volatile assets like cryptocurrency.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
All progress takes place outside the usual expectation.

Information provided is only educational and should not be used to take action in the markets.