ETH/USD - Levels To Watch

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
What's up traders, I hope you are all having a good start to the trading week.

Here we are analyzing ETH/USD on the 4H chart.

Ethereum is currently in a downside correction move. Price recently has been trading within a descending structure, with the latest peak at 862, before a big breakdown. With this, there was also resistance found from the 200 and 50 moving average, which coincided very well with Ethereum , and even if Ethereum was strong itself, the technicals were no match when they are of this caliber. A resistance structure with an exact match with the major long term moving averages is a might resistance.

Ethereum is currently trading at 780, which directly coincides with a horizontal support zone . Price may well find support here at this level and find some upside, which I would expect to hit the high point of the side-wards resistance line at 830, before hitting the major resistance again and likely breaking down to the lower support level of 580. Price may well hit the resistance at 830 and then come back into current support and find bullish momentum, but there would have to be a significant amount of bullish participation for this to happen.

Price is likely to have a correction for the time being and remain weak. Price is at the mercy of very strong technicals, and this shall continue into the meantime.

After the corrective move has finished, I am expecting Ethereum to find some upside, probably to the current support, which would turn resistance, at the current price of 780.

Bare in mind, that a lower retest would actually be GOOD. Because resistance is so significant, any up moves are likely not real and will put people in costly bull traps.

I will update this analysis when I receive above 40 likes.
looks like a good buy position now
Thank you !
I reached same conclusion as you few days ago. At the current rate we are more than likely to test the floor below, i see the immediate support breaking when next rejection happens after reaching the roof of the decending trendline.
Thumbs up!
+1 Reply
TomProTrader ethhunter
@ethhunter, Agreed, thanks for sharing.
Good to see a high rep trader warning his viewers about bull traps, and a possible dangerous current situation.
+2 Reply
TomProTrader Giorgioversace
@Giorgioversace, Thank you.
+2 Reply
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