Ethereum is moving very well since bouncing at a compelling horizontal support zone between 500 and 469. Price has moved perfectly in accordance with my previous analysis so far (See related ideas below for more details of this), and I am expecting positive results to continue as per my previous analysis!
Swiftly moving on, when analyzing Ethereum, it is clear there has been some strong bullish momentum up to a long term side-wards resistance at 540. Price is trading right against the resistance line, and still looks strong for possibility of more upside.
There is 2 ways Price will now move:
- Price breaks above the side-wards resistance line at 540, retests the side-wards resistance as a new support before bouncing and going to the upside, to the upside target at 620.
- Price bounces at the side-wards resistance level at 540, and breaks lower into structure once again to approximately 520 before bouncing up again, breaking structure and finding the upside target.
Bear in mind that is the second scenario plays out, it'll take longer to hit the upside target at 620. It'll also have less probability of hitting the target if we go lower, due to needing more bullish participation as well as needing bulls around for a longer period of time. With Bitcoin's recent lack of momentum, that's unfavorable.
Please leave a LIKE and FOLLOW. I'd really appreciate it.
I added a like.. especially because you are the FIRST to report on the new movement and at the same time have been right all this time and.. in the face of overwhelming skepticism. Touche.
I like where your thinking is, but I see lots of Bearish Divergence on the RSI all the way to 1hr time frames and thus think it is more likely that we come back to the 518-520 support level before a further push up.
TomProTrader
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@Superrg1, Yep, that's one of the possibilities i outlined in the above analysis. That we could go lower at the side-wards resistance before a up move.