Welcome to this analysis where we are looking at Ethereum 12-hour timeframe perspective, this is also an update about the analysis I made on the daily with Ethereum and where the upper short-entry and resistance recently confirmed faster as expected, with the test of the upper boundary this also matched and it was a good place to cover our long-positions as we saw with good expectations and results. Now as Ethereum fell below this important middle-line-support and testing now meaningful support which is the 100-EMA it is an important question how and when Ethereum can recover from this bearishness or if it even falls more to form a pull-back-extension, therefore I detected all the important levels and possible outcomes we should consider with Ethereum in this established structure.
Looking at my chart you can watch Ethereum now clearly below the middle-line-support and tested recently the 100-EMA therefore we can expect a little bounce to the upside here as Ethereum is somewhat recovering however this possible bounce will directly lead into resistance lying there not only consisting of the middle-line-resistance which previously supported but also of the horizontal resistance lying in this structure. Also on the smaller timeframes, Ethereum has formed a formation like a head and a shoulder here where the resistance is stronger than normal, this is why a pullback can be expected which will move to the lower levels in the structure again and test them, mainly it will be the lower boundary of this ascending-channel-formation marked in blue which is important for Ethereum to hold considering any bullishness here.
Important Upcoming Measurements:
Now as we can expect the pullback from middle-line-resistance to show up the next times Ethereum will move to the lower boundary and test it which will also match to the wave-count forming here, this level will be extremely important for Ethereum to hold because when this does not happen and Ethereum falls below the lower boundary it will extend the pullback within the pull-back-extension-zone marked in my chart in red. However, when Ethereum manages to hold this line and stabilize here it is possible to form the next wave to the upside which will lead to a test of the remaining resistance levels lying there, the next times it will be important how Ethereum will react in the lower boundary and it will be interesting to watch the further developments after this has happened.
In this manner, thank you for watching, good day my friends, and support for more market insight.
"Trading effectively is about assessing possibilities not certainties."
Information provided is only educational and should not be used to take action in the market.