Ethereum has perfectly followed my previous analysis, so well done to all who followed the analysis and profited from it! Price hit a horizontal support zone, and then bounced up to the side-wards resistance. (See related ideas for more details of this idea). The idea played out to the end, and now it is time to update this analysis so we can further track Ethereum's movements to maximize our profits.
At present price completed a measure move target for a bearish flag pattern which hit a horizontal support between 405 and 394 and then price aggressively bounced since. Price is now approaching side-wards resistance, which coincides with a horizontal support/resistance transition level.
There is 2 ways that price will now act:
1: Price will bounce at the support/resistance transition zone between 463 ad 476 before bouncing down lower towards swing low at 405 and 394 before the next bounce. The support/resistance level also coincides with side-wards resistance, so this is likely a strong resistance ceiling that definitely needs to be watched out for.
2: Price breaks the side-wards support/resistance transition level, and the side-wards resistance level, breaks to the upside target at 512.
Bear in mind that if scenario 2 plays out, that when the side-wards support/resistance transition zone will likely end up being retested as a new support zone before the upside move begins.
I will continue to update this analysis if it gets enough views/likes.
Please leave a LIKE and follow. I'd really appreciate it. :-)
At present price completed a measure move target for a bearish flag pattern which hit a horizontal support between 405 and 394 and then price aggressively bounced since. Price is now approaching side-wards resistance, which coincides with a horizontal support/resistance transition level.
There is 2 ways that price will now act:
1: Price will bounce at the support/resistance transition zone between 463 ad 476 before bouncing down lower towards swing low at 405 and 394 before the next bounce. The support/resistance level also coincides with side-wards resistance, so this is likely a strong resistance ceiling that definitely needs to be watched out for.
2: Price breaks the side-wards support/resistance transition level, and the side-wards resistance level, breaks to the upside target at 512.
Bear in mind that if scenario 2 plays out, that when the side-wards support/resistance transition zone will likely end up being retested as a new support zone before the upside move begins.
I will continue to update this analysis if it gets enough views/likes.
Please leave a LIKE and follow. I'd really appreciate it. :-)
Comment:
Price is approaching the horizontal resistance zone as predicted. The question is, will be break down from here, or break above the horizontal resistance?
Candlesticks indicate some short term bullish momentum in the meantime, could this be what the bulls need to get the momentum to break both resistance levels? We will soon find out.
I will be keeping this idea updated.
Please leave a LIKE, I'd really appreciate it.
Candlesticks indicate some short term bullish momentum in the meantime, could this be what the bulls need to get the momentum to break both resistance levels? We will soon find out.
I will be keeping this idea updated.
Please leave a LIKE, I'd really appreciate it.
Comment:
This trade is going perfectly to plan. Price had a correction right at the horizontal resistance zone, and has since gained momentum to the upside, and retested the top of the horizontal resistance zone as well as the long term side-wards resistance line at 477.30
Price will either break 477.30 and go to my predicted upside target at 512. Or, price could lose momentum her, correct to around 440, and the rally again and find momentum to breakout of side-wards resistance and go to upside target at 512.
Price will either break 477.30 and go to my predicted upside target at 512. Or, price could lose momentum her, correct to around 440, and the rally again and find momentum to breakout of side-wards resistance and go to upside target at 512.
Will price break down at the early stages of resistance retest? Or will price penetrate the support/resistance transition zone further and retest the side-wards resistance line before breaking down further?
It's a waiting game for now, let's see how price behaves as it enters the support/resistance transition zone.
Please leave a LIKE & follow. This motivates me to post more analysis!