Hi friends, Today I come with a new analysis on Ethereum for the futures lovers(ETHUSDT) But before I kick start, kindly show me some love by LIKING this post.
In my last analysis on April 17, I talked about ETH going to 200 while price was still at 152 with main TARGET as 164, 176 and 200. I am happy to say today that all TA calls was successfully hit.The good question here remains WHERE IS ETHEREUM GOING FROM HERE?
using multiple timeframe(1hr, 4hrs, 24hrs) I will try to explain why the next bus is heading to 176 -155 in the meantime.
1HR CHART ANALYSIS PATTERNS OBSERVED -RISING WEDGE BEARISH PATTERN (this pattern holds three characteristics : first, the converging trend lines; Second, a pattern declining volume as the price progresses through the pattern; Third, a breakout from one of the trend lines - Declining volume -MACD Divergence
POSSIBLE OUTCOME FROM THIS ANALYSIS I anticipate a breakout reversal base on the 1hr timeframe, and here is why
While price can most likely be out of either trend line above, wedges are known to have a tendency to break in the opposite direction from the trend line. Therefore permit me to say that the rising wedge above won the 1hrs is indicating the more likely potential of falling prices after a breakout of the lower trend line. Also you can notice the decline in volume of BINANCE:ETHUSDT
For STOP LOSS, I would say that wedge patterns converge to a smaller price channel most times, the distance between the price on the entry of the trade and the price for stop loss is relatively smaller than the start of the pattern.
4HRS CHART ANALYSIS
PATTERNS OBSERVED
-using momentum indicator like RSI shows BEARISH DIVERGENCE (price continue to form higher highs while RSI is forming significant lower highs -Strong Decline in Volume -Using PIVOT POINT, (we are currently on a strong resistance at R1also known as Resistance 1 is calculated by = (2*Pivot Point) - Low ( previous period). I will leave the explanation of how to calculate Pivot Levels for another post. - Declining volume
24hrs Chart
The 1D chart says a lot, it shows that we still have a chance to go up higher than 200 after the pull back is over .
Trade Setup Entry = If price closes and open below 193 enter a Sell Target = 176, 164 and 155(take profit at each point as any of this support might lead to reverse)
For STOP LOSS, I would say that wedge patterns converge to a smaller price channel most times, the distance between the price on the entry of the trade and the price for stop loss is relatively smaller than the start of the pattern.
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