Etherium Reverses Out Of Buy Area

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
Today we've seen the price reverse out of the buy area I said to watch for a reversal in yesterdays update.

The reversal candlestick that had just formed on the edge of the area when I posted yesterdays update (blue arrow) didn't cause the price to reverse. Instead, it dropped slightly deeper into the area and then reversed after a reversal candlestick formed on the 1 hour timeframe (red arrow). The reversal itself hasn't been that strong, with only a couple of large candlesticks forming during the rise. If this reversal was going to cause the price to move back up to the highs made earlier this week I'd expect to see multiple large candlesticks push the price up very quickly, which we haven't seen - at least not yet.

A couple of hours ago a sudden rise caused the price to enter the sell area that formed when the price fell into the buy area yesterday evening. The candlestick that shows this rise (yellow arrow) ended with a large wick on it, indicating that someone sold a lot of Etherium when the price entered the sell area, and in turn, suggesting we could now see the price now fall back into the buy area later on tonight or tomorrow.

The point to watch now is the small area I've marked.

This area formed when the dip ended earlier today, and is the most recent point where I think we could see the price reverse. I'm not confident we'll see the price reverse from this little area, I think a drop into the big buy area at the bottom is more likely. However, there is a chance it could reverse at this area so it's still a good idea to monitor it.

As usual, watch for reversal candlesticks to form when the price enters the area.


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