Ethereum, Amplified Volatility After This Formation Completes!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at the Ethereum 4-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possible confirmational setups further can look like. Ethereum since a long time now consolidates bearishly to the downside where it touched several important reference point, a big question now is if this downtrend goes on further or if there can come firstly a minimal reversal in the structure which will lead to test the upper levels again. The structure differs from the major Bitcoin as Bitcoin is way in higher highs territory where fake breakouts can happen while Ethereum is on the higher timeframes trading in a sideways range, therefore I detected all the important levels and likely outcomes we should consider with Ethereum and the established structure.

When looking at my chart you can watch there Ethereum now building this massive descending-triangle-formation marked in blue in my chart where it already touched the upper and lower boundary several times and formed this coherent wave-count already completing wave A-D where it is now setting up to form the final wave E in the wave-count which will completely emerge when the pullback from the upper boundary and 20-EMA resistance gets stronger. This final wave E will lead into the lower back-up-cluster marked in my chart in blue, which is consisting of the lower-boundary-support and the 300-EMA marked in green, this back-up-cluster can be the origin of the final breakout and confirmation of the descending-triangle-formation, here it is really important that Ethereum manages to bounce in the back-up-cluster and do not falls below it because this can invalidate the formation in the backend.

The next times will show how Ethereum completes the wave-count and how the final breakout can show up, when this breakout is strong enough and Ethereum manages also for example a pullback to the upper boundary before moving further this can provide the proper confirmational entry-setup as it is marked in my chart, this will activate the targets at 402. The whole mechanism can be traded either aggressively with immediate entry or conservative with entry after confirmation, although the immediate entry is also possible here, the entry after confirmation will provide the better setup as already mentioned. After Ethereum formed the breakout properly and reached the targets it has to be elevated what it does from there and if there can follow a possible continuation or Ethereum firstly reverses and visits lower levels from there.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
“Good luck is when opportunity meets preparation.”

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