Ethereum, Buckling Up Before A Final Wave Can Establish!

Hi, Welcome to this analysis about ethereums weekly timeframe perspective, in ethereum we have a very interesting situation developed the last times, compared to bitcoin it already touched the upper boundary of its ascending-channel-formation and is also trading above the established pre-corona highs where bitcoin just touched them ethereum is trading above them, this fact makes ethereum a very strong currency at the moment with some decent potentials to the upside when it confirms to certain dynamics waiting on the schedule. When looking at such dynamics within the cryptocurrency market it is important to assess the differences between the currencies as many people often tent to determine the market in one direction this cant be done as the market is not like back in 2017 where everything went well into one direction this dynamic just has increased with the corona pandemic and measurements happened within it.

Support And Resistance:

Right now looking at my chart, there are some very fundamental measurements came I detected, which also shows a divergence to the major bitcoin. Firstly as you can watch in my chart ethereum just bounced at the local support line marked in blue which is support established by past price action and the fact that ethereum now bounced there a second time makes it a strong level, also the fact that this support line is above the pre-corona highs support-line makes it a solid zones which can be the origin for the next wave to the upside when ethereum manages to move above the upper boundary of its channel formation with a decisive move this can bring ethereum to higher levels in the structure as it is marked in my chart.

Channels And Formation:

Besides the recognization that ethereum has positive support and resistance structure here the consideration of a breakout of the channel to the upside can bring ethereum into a really bullish state, furthermore, it will also confirm the final wave 5 of the major wave count, the targets for this wave count when it manages to break above the upper boundary with a strong volatile move will be in the Fibonacci-structure marked in red in my chart this will complete the whole wave count and can be used for possible short entries in the structure, where a test of the upper boundary can remain, when ethereum shows up with this it has to be elevated how the reaction into the upper boundaries will look like.

Outlook:

In comparison to the major bitcoin we are facing a currency with ethereum which has a more dynamic structure at the moment, with the upper boundary already tested and trading above meaningful support levels this can also result into stronger movements, when ethereum shows up with it as suggested the targets will be activated and when these are reached a pull back to lower levels firstly can be expected. Currently the bearish perspective decreases as ethereum did not manage to break below the remaining supports with its recent bearish moves, this is why a stabilization and final wave setup can be more expected.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
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Information provided is only educational and should not be used to take action in the markets.