What's up traders, I hope you're all having a wonderful weekend.
Let's analyze ETH/USD on the 1D chart
Ethereum is falling at a side-wards resistance line on the daily chart at 625 level. Price is also under 20 moving average resistance simultaneously. The averages are still separated suggesting the trend is still down, so we need to be mindful of this before immediately assuming to take a long position in the future.
There is 2 outcomes for Ethereum at this stage, which I have outlined below:
- Ethereum falls from current levels into a key hidden support level at 470, before retesting and breaking to the upside. With this scenario breaking out of structure is more likely than the below scenario because we are nearer the side-wards resistance level and less momentum is needed to breakout.
- Ethereum continues current fall into the lower horizontal support zone at 356, before bouncing to the upside. With this scenario it may be slightly harder to break out of side-wards resistance line because it would take much more bull participation and consistency to successfully breakout.
Although scenario 2 is better for short term upside, I'd rather see scenario 1. Why? Scenario 1 relies on a hidden support level that isn't as strong as the level that would be tested on scenario 2.
I will update this analysis when I receive above 40 likes.
Let's analyze ETH/USD on the 1D chart
Ethereum is falling at a side-wards resistance line on the daily chart at 625 level. Price is also under 20 moving average resistance simultaneously. The averages are still separated suggesting the trend is still down, so we need to be mindful of this before immediately assuming to take a long position in the future.
There is 2 outcomes for Ethereum at this stage, which I have outlined below:
- Ethereum falls from current levels into a key hidden support level at 470, before retesting and breaking to the upside. With this scenario breaking out of structure is more likely than the below scenario because we are nearer the side-wards resistance level and less momentum is needed to breakout.
- Ethereum continues current fall into the lower horizontal support zone at 356, before bouncing to the upside. With this scenario it may be slightly harder to break out of side-wards resistance line because it would take much more bull participation and consistency to successfully breakout.
Although scenario 2 is better for short term upside, I'd rather see scenario 1. Why? Scenario 1 relies on a hidden support level that isn't as strong as the level that would be tested on scenario 2.
I will update this analysis when I receive above 40 likes.
