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In this analysis, we explore Ethereum's 4 hour chart to assess the and evidence for the next probable move.
- To begin with, Ethereum has been on a very steep uptrend, trading within an ascending for days
- The Simple Moving Averages ( ) are all aligned in order: 20, 50, 100, and 200 on the 4H
- Prices are trading way above the Moving Averages as signs of strong support for the
- The Ichomku cloud is also located below current prices, indicating a clear rally and strong support
- While the ( ) is at overbought zones, we can see that we have previously seen Ethereum being at an overbought state, yet having continued to rally
- Similarly, the Moving Average Convergence Divergence ( ) shows strong histograms as a sign of momentum
- The fact that prices have broken out of the ascending indicates strong bullishness
- However, what is concerning is the fact that such steep trends are unsustainable
What We Believe
While the trend and technical evidence suggest that Ethereum is clearly very , its currently steep trend is extremely unsustainable. Thus, should a correction play out, we could expect strong support around 350 USDT where the 20 and channel support converge.
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