Hello all, this will be a quick update analysis about Ethereum. Let's get it started!
Red zone is the liquidation zone
White zone is the resistance area
The price however is in its decent parabolic bull run since December 2019. And since the parabolic bull run, we haven't seen any significant corrective pattern. This time could be different for ethereum. The reason why I believe there will be a significant correction is based on these 3 factors :
1. Although the price has already broken out of the white resistance trend line, it's now testing the liquidation zone as it has a confluence with the white trend line and the .382 fibs level as a major resistance. White trend line is the previous broken support that is now become resistance as well.
2. The MACD histogram has a potential of ticking down on daily time frame. This will indicate that the bulls is losing strength
3. Looking at the green zone, it's beautifully aligning with the yellow line which is the previous broken resistance that is now become support. Since the price has broken out of this yellow line as resistance, we haven't seen any retest toward this line as a support to confirm the phase 2 of my break out strategy.
We might see a correction in the upcoming days. The additional reasons why I believe that there is now a shifting period from bulls to bears is that bitcoin potentially will have its major correction to the downside.
Red zone is the liquidation zone
White zone is the resistance area
The price however is in its decent parabolic bull run since December 2019. And since the parabolic bull run, we haven't seen any significant corrective pattern. This time could be different for ethereum. The reason why I believe there will be a significant correction is based on these 3 factors :
1. Although the price has already broken out of the white resistance trend line, it's now testing the liquidation zone as it has a confluence with the white trend line and the .382 fibs level as a major resistance. White trend line is the previous broken support that is now become resistance as well.
2. The MACD histogram has a potential of ticking down on daily time frame. This will indicate that the bulls is losing strength
3. Looking at the green zone, it's beautifully aligning with the yellow line which is the previous broken resistance that is now become support. Since the price has broken out of this yellow line as resistance, we haven't seen any retest toward this line as a support to confirm the phase 2 of my break out strategy.
We might see a correction in the upcoming days. The additional reasons why I believe that there is now a shifting period from bulls to bears is that bitcoin potentially will have its major correction to the downside.