Ethereum, Upcoming Tests Of Important Level, What To Consider!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Ethereum's daily timeframe perspective, the recent events, the established formational structure, what we can expect the upcoming times, and how to possibly handle the situation in an appropriate manner. Ethereum managed to breakout above the upper boundaries with the great bullish volatility to the upside it has shown up with, now as this initial bullish step has shown up there are further possibilities given for a bullish continuation and potentials with which Ethereum can show up here, nevertheless, there are some necessary price-actions it needs to show before considering the bullish continuation finally besides that Ethereum needs to take out significant zones in order to fulfill the bullish perspective successfully, therefore I detected the important levels and likely outcomes we should consider at the moment with Ethereum.

When looking at my chart you can watch there Ethereum reached this preliminary important Fibonacci-resistance within the 1.618 level where a reversal to the downside is likely as this is a strong resistance-level normally followed up by protracted bearishness, also the market is slightly overbought here this is why a bearish pullback gets more possible under this aspect. When Ethereum shows up with such price-action it will continue till there is support found that can reverse the whole dynamic again, in this case, it will be the upper boundary of the previously formed ascending-channel-formation where the back-up-cluster is lying consisting of the upper-boundary in black and also of the ascending-trend-line in dashed grey, this level is highly important for Ethereum to hold sustainably and do not fall below it because this can possibly invalidate ongoing bullishness ahead.

With the upcoming times, Ethereum has to decide how it manages to bounce from the back-up-cluster and establish solid bullishness from there to finally move higher and go for a test of the upper-resistance marked in red in my chart, this will be a crucial test as there is resistance and also supply lying built by past price-actions. It is possible that Ethereum pulls back again within this level however for a successful bullish continuation this level needs to be taken out completely. The whole structure differs from the major Bitcoin as the major Bitcoin already formed higher highs while Ethereum is still trading in a bigger sideways range which will only be confirmed to the upside when Ethereum manages a decisive bullish move above the resistance which does not mean it can show up with fruitful potentials, it will be definitely an interesting journey.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
“Prospect is the ingredient of good fortune.”

Information provided is only educational and should not be used to take action in the market.