Welcome to this analysis where we are looking at Ethereums 4-hour timeframe perspective, the recent events, the current formational structure, what we can expect the upcoming times and how to possibly handle the situation appropriately. Ethereum is since a long time moving in this ascending-channel-formation where it already tested several times the lower boundary and also formed this coherent wave-count within the whole channel, besides that it has this strong-resistance-line lying there which it severely confirmed bearishly to the downside, a new touch of this trendline will likely result in a pullback to the downside, this pullback can be the final origin of the formation confirming to the downside and the ascending-channel forming into a confirmed bear-flag when Ethereum then crosses below the magic 180-EMA it is likely to continue bearishly further in the structure.
Currently, the breakdown can be expected as the wave-count also already completed and there are strong resistance layers above as suggested, there is however a possibility to invalidate this immediate breakdown which does not mean it can not happen sooner or later, this will show up when Ethereum firstly moves above the strong-resistance-line and closes there to move higher from this standpoint resulting into a wave-E-extension, however, Ethereum will have a hard time going above this resistance and the pullback from there is much more likely. When Ethereum then confirms within the bearish-continuation-zone with a decisive volatile move it will continue to the downside till the lower-back-up-support is reached where stabilization can be considered, currently, it is important how Ethereum reacts within the resistance-zone and furthers from there.
In this manner, thank you everybody for watching, have a good day as well as good trading, all the best!
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Information provided is only educational and should not be used to take action in the market.