Hello Traders Investors And Community, welcome to this analysis where we are looking at ethereum daily timeframe perspective and the current confirmed broadening wedge situation, I mentioned this wedge already on the 12-hour timeframe where all downside targets reached so far and ethereum now found some support in the current range, the big question now is how long this support can behold sustainably and if there will come more downside or ethereum manages somewhat to prove a reversal which is a highly unlikely outcome at the moment. In comparison to bitcoin ethereum was a coin which heavily fell to the downside with established high bearish volatility while bitcoin consolidated in its range ethereum provided more downside, this bearish edge established since the broadening wedge fully confirmed should not be ignored here in this case I detected the important levels and outcomes we should consider now.
When looking at my chart you can watch ethereum bounced there from the 322.5 to 324 support marked in orange and also at the 100-EMA in grey, these are important supports in the actual structure and the source of the little up moves ethereum now proving to the upside, these up moves will run into the strong and still preliminary existing resistance consisting of the past price action and the lower boundary of the broadening wedge forming a logical and coherent support cluster marked in red in my chart, this cluster has a high possibility to confirm bearish to the downside and the probability that ethereum manages to move above it is currently highly marginal, therefore the bearish case should more be expected, the resistance-cluster can be a source of the next heavy downside-impulse similar to the first one as it is marked in my chart, because such impulses seldom develop only once it can follow up with a new one.
When looking for the proper confirmation of the downside impulse this will happen when ethereum closes below the 100-EMA and below the orange support which will cause the ongoing bearish pressure to the downside, when ethereum comes up with this it will also form the final wave C of the major wave-count formed by ethereum in the structure. Compared to the rest marked ethereum is definitely one of the weaker currencies at the moment therefore it has a bigger possibility to continue its bearishness to the downside, in this case, we should be prepared to wage the upcoming volatility in the right manner and don't get overwhelmed by circumstances as this is happening too often these days, the next times will show how ethereum reacts into the strong resistance cluster when there comes a sudden bearish move to the downside this will increase the possibility highly for ethereum to form the next downside-impulse in destiny.
In this manner, thank you for watching, support for more market insight, good weekend to you and all the best! "The market is a forecaster looking forward."
Information provided is only educational and should not be used to take action in the markets.
Post your comments, questions, and ideas about ETHEREUM here.
Q8free83
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@VincePrince, Good idea It just hit the support zone will it break it down to the lower one or will bounce back to hit the 350 resistant level again, If so Would it break that up to 380 or no, Will see.
VincePrince
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@Q8free83, Thank you, it reached the possible short-zone and pulled back from there.