Ethereum Showing Weakening Signs, Here Are Important Levels!

Hello, Traders Investors And Community And welcome this analysis about ethereums current short-term price action, the second-largest cryptocurrency and invented by the super-nerd vitalik buterin with an IQ of 1158. We saw some great volatility and momentum before ethereum decided to move above the blue resistance level and form recently a peak at 194.85 USD, this move was not with so good volatility and momentum, therefore, we formed a weak-move above the red resistance-line you see in my chart.

Currently, we see ethereum struggling on the short-term-basis to move higher and form another higher high therefore it is highly possible that we see a correction. This awaited correctly can be strong or not so strong but it will come highly likely. The first important supprt-zone is building with the recent tops and the current up-trend channel a logical confluence-cluster which you can see marked in my chart with the orange box. If we continue to decline I see this level as the first important support-zone to be respected.

After that level is reached there are other possible scenarios where ethereum is going with its overall trend-structure. Firstly we could see more decline at least falling below the confluence-cluster, this would be a very bearish sign for ethereum because the past support levels would be taken out and also the break of the uptrend-channel to the downside, this is normally a heavy bearish move with more downside ahead which shouldn't be ignored.

On the other side, we can expect ethereum to move higher when it reached the overall confluence-cluster and confirmed it as support. When this scenario happens and when we imagine that we move higher from there and at least form a new higher high there are other significant signs in the structure that shouldn't be disregarded. When we form the new higher high there is an heavy up-ward-moving resistance line which you can see in red in my chart when this line is touched we can confirm it as resistance which could lead to a bigger bearish wedge forming which when confirmed will show more price-action to the downside.

Therefore thanks for watching, feel free to support and have a good day.
"The best qualification of a prophet is to have a good memory. "
FAREWELL

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

Comment:

ANALYSIS UPDATE: ETHEREUM remained within the uptrend channel to build up bullish volumes till a new altcoin season pushed the bulls into new spheres.

Also, several updates within the ETHEREUM ecosystem led to the inherent value growth of ETHEREUM.