After bouncing from the downtrend line, the price dropped to the support zone at 160.00 level. The price action in this zone will show us further market movements.
This zone includes the uptrend line which makes it solid. If the price bounces from the support, the market will be able to move back to the downtrend line. If the price can break this resistance, we will get a signal confirming the upward movement to the previous highs at 185.00 and probably 200.00 levels.
If the price breaks the support zone, the market will give a strong bearish signal. We should be ready to see the falling to another support zone between 140.00 and the main uptrend line. This zone will be good for buying as it's strong and it can be the perfect reversal zone for the market based on the higher timeframes. Opening long positions based on confirmed reversal signals will be a good investment for the long run.
I was just pointing out the same green line on the video today. If this is a higher low formation we could see a really nice bounce up and more so, if we form into the pressure point of the triangle wedge that's where we'll be looking for some breakout trades. Thanks as always for the great updates :) Currently short and up about 11% and scaling out since we think a bounce is due.
AlanSantana
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Ethereum is now trading within a descending channel, can go lower:
TradeIndicators
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@alanmasters, I like the midline, haven't seen that before on a descending wedge. Gives perspective if we might continue in a downtrend. Great work man!
SalviG
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@DLavrov thank you for the great analysis. Do you think the break through the support at 160 was a fake broke or a real one that will lead to a possible drop to 140? Thanks.
DLavrov
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@SalviG, I would like to see the price movement to 140.00 as it gives better buy opportunity. As for 160.00 level, it can be used as a level for breakout and buy pending orders when the price will bounce and start a new upward wave.
Thanks for your comment!
@DLavrov what do you think of the 200MA average as a resistence. it was aa lot of confluence zone, i wrote about it a few days ago.
DLavrov
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@luissjp, SMA100 and SMA200 are strong trend lines. They can be used for confirmation trend reversals or like support and resistance lines. In this example, it will be a good support.