Welcome to this analysis where we are looking at Ethereums 1-hour timeframe perspective, the recent events, the current formational structure, what we can expect the upcoming times and how to possibly handle the situation appropriately. Ethereum recently has shown up with a strong impulse to the downside where it is now mingling in the structure and somewhat found some support, the big question is now how long this can hold and if there comes a new impulse to the downside or Ethereum manages to stabilize which is not the most likely scenario to expect at the moment, therefore I detected all the important levels and likely outcomes we should consider with Ethereum for now.
Looking at my chart you can watch there that Ethereum is now trading within this channel-formation where it also formed a coherent wave-count with the wave A-C already established and now as Ethereum approaches resistance setting up to form the wave D which will lead into the lower boundary where the back-up-cluster lying there can be the origin for the final wave E which will complete the whole wave-count, this wave E will directly lead into the strong resistance-cluster above there marked in my chart in red where several resistances coming together formed by the falling resistance-line in black, the horizontal resistance and the upper-boundary-resistance of the channel-formation.
The next times it will be important with which strength Ethereum pulls back within the final wave E and the resistance-cluster, when this pullback is strong enough Ethereum can directly move on to form the next impulse to the downside as it is marked in my chart, when this happens and Ethereum marks below the lower-boundary of the channel-formation, this will confirm the channel as a bear-flag and point to increased bearishness and lower levels to be reached for sure, the minimum-target then will be at the 368 level then from where it has to be elevated how Ethereum continues from there and if there can be a possible reversal or further declines follow up.
In this manner, thank you everybody for watching, have a good day as well as good trading, all the best!
“Trading effectively is about assessing possibilities, not certainties.”
Information provided is only educational and should not be used to take action in the market.