The latest bullish pullback on ETHUSD entails excellent opportunities for contrarian trading. After having tested the 23.6% Fibonacci on two separate occasions, the price is currently probing the 38.2% Fibonacci.
The descending trend line (in red) is currently threading very close to this major resistance, which in itself presupposes a likely reversal.
Moreover, it is worth pointing out that the Ichimoku Cloud Indicator underpins persisting bearish bias in the market. The price has reached the upper boundary of the Cloud, which is converging with the trend line and the psychologically significant resistance at 3000.00.
When all of these factors are considered in conjunction with each other, a bearish correction from 3000.00 seems highly probable. From there, ETHUSD is likely to drop to the 23.6% Fibonacci for a third time.
The descending trend line (in red) is currently threading very close to this major resistance, which in itself presupposes a likely reversal.
Moreover, it is worth pointing out that the Ichimoku Cloud Indicator underpins persisting bearish bias in the market. The price has reached the upper boundary of the Cloud, which is converging with the trend line and the psychologically significant resistance at 3000.00.
When all of these factors are considered in conjunction with each other, a bearish correction from 3000.00 seems highly probable. From there, ETHUSD is likely to drop to the 23.6% Fibonacci for a third time.
