Etherium: Large Spike Suggests Reversal Back To Sell Area
Earlier this afternoon a large drop into the buy area that caused the price to reverse on Friday resulted in a spike (a candlestick with a large one sided wick) forming.
The reversal out of the sell area that began in my last update did continue, eventually causing the price to fall into the small buy area I said to watch for a reversal in the same update. A small reversal (red arrow) took place when the price entered this area but it was not enough to cause it to move back into the sell area, and the price ultimately ended up falling back towards the bottom buy area.
The fact that a large spike appeared upon the price falling into the bottom buy area suggest big traders and investors are buying Etherium, indicating we may now see the price reverse and continue to rise over the coming days.
The point to watch now is the area I've marked between the low of the spike and the beginning of the rise that took place immediately after.
If the spike was caused by traders and investors buying large quantities of Etherium there's a strong possibility they weren't able to buy all of the Etherium they wanted during the drop that created the spike, meaning they might have to buy more.
If this is the case we could see the price fall into the small area I've marked and then reverse, as this area encompasses the point where they would have bought Etherium and if they're going to buy more they'll want to buy at a similar price to where they first bought, so as to make sure that if the price does reverse they make a similar amount of money from each purchase.
As always, keep an eye out for reversal candlesticks if you see the price enter the area tonight or tomorrow.
The reversal out of the sell area that began in my last update did continue, eventually causing the price to fall into the small buy area I said to watch for a reversal in the same update. A small reversal (red arrow) took place when the price entered this area but it was not enough to cause it to move back into the sell area, and the price ultimately ended up falling back towards the bottom buy area.
The fact that a large spike appeared upon the price falling into the bottom buy area suggest big traders and investors are buying Etherium, indicating we may now see the price reverse and continue to rise over the coming days.
The point to watch now is the area I've marked between the low of the spike and the beginning of the rise that took place immediately after.
If the spike was caused by traders and investors buying large quantities of Etherium there's a strong possibility they weren't able to buy all of the Etherium they wanted during the drop that created the spike, meaning they might have to buy more.
If this is the case we could see the price fall into the small area I've marked and then reverse, as this area encompasses the point where they would have bought Etherium and if they're going to buy more they'll want to buy at a similar price to where they first bought, so as to make sure that if the price does reverse they make a similar amount of money from each purchase.
As always, keep an eye out for reversal candlesticks if you see the price enter the area tonight or tomorrow.