Yesterday, markets saw a good correction, Ethereum went as low as $1850, but immediately bounced from there. Does that mean traders just "Bought the dip" Well, time will tell !
I have used a Gann Fan to draw trend lines on the chart. As we can clearly see the previous bullish trend was respecting the 45 degree line very well, and after achieving an ATH, because of overall market crashing, it couldn't hold the 45degree trendline and broke downwards.
As RSI recently visited the oversold region, if we see good buying volume, the 26.5 degree should act as a support. Else, it could accumulate between 3x1 and 2x1 line before moving further up.
On the other hand, if this scenario doesn't play out, it could again revisit the $2000 area, before making an up trend.
Let us know what do you think in the comments box. Follow us for more trading ideas.
Visit Tuned to learn algorithmic trading, or if you want to invest and diversify in a wide range of crypto trading syndications.
I have used a Gann Fan to draw trend lines on the chart. As we can clearly see the previous bullish trend was respecting the 45 degree line very well, and after achieving an ATH, because of overall market crashing, it couldn't hold the 45degree trendline and broke downwards.
As RSI recently visited the oversold region, if we see good buying volume, the 26.5 degree should act as a support. Else, it could accumulate between 3x1 and 2x1 line before moving further up.
On the other hand, if this scenario doesn't play out, it could again revisit the $2000 area, before making an up trend.
Let us know what do you think in the comments box. Follow us for more trading ideas.
Visit Tuned to learn algorithmic trading, or if you want to invest and diversify in a wide range of crypto trading syndications.