yarr

Ethereum - Bearish or Bullish? Where its Going Next?

BINANCE:ETHUSDT   Ethereum / TetherUS
So where is Ethereum heading next? That's a good question.

The price of Ethereum already broke out of the falling wedge (is considered a bullish reversal pattern) but it wasn't accompanied with an expanding volume and that's why it didn't broke out with a huge candle.
A breakout with expanding volume usually is a sign for a strong bullish breakout which leads for a higher levels.

So since it's lacking volume and is testing the previous support levels, does this mean the price will move lower? Not certainly.
It's important to keep monitoring these previous support areas to see whether they hold or not and if it starts to reverse from them.
This is not considered bearish until the daily candle closes below one of the key support levels or a local low. This also invalidates descending channel & falling wedge patterns.

Bullish Divergence
Just wanting to point out that MACD's histogram is actually revealing the weakening strength of bears (sellers) and supports a bullish reversal.

Recently the market got rejected from the 0.618 fibonacci level and tells us that there are sellers. This level has shared a lot of history in the past as seen on the chart and has acted as support and also as resistance level .
So by closing above of this level the market is revealing the strong of bulls and likely to continue. It's working as bullish break out level.

Next resistance levels:
Just a reminder: Resistance levels are working as good selling points and of course it can vary depending on your style, strategies or risk management techniques which levels works the best for you.

In the other hand if the daily candlestick closes below of the key support zone , then it's worth to be patient and monitor the next support levels for new trading opportunities.
Next support levels are:

Conclusion:
Bullish divergence reveals the weakening strength of bears and it's back to the previous support zone .
MACD is about to cross upwards which would support upward movement. This is time to be patient and follow the price action.
The current setup is favoring more bulls than bears currently and if it does break below of the major support level , then it's good to monitor the previous support levels which may offer really good new trading opportunities.


If you come up with any questions feel free to ask!

DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.

Yarr
Comment: ETH/USDT is starting to form bearish divergence pattern on the 4-hour timeframe that we are monitoring closely. Could lead for minor pullback and allow new trading opportunities from the lower levels.

Comments

Wrong conclusion if i may say, it does not favor bulls (at least for now). Thanks for your view though

Reply
bokeb GettingAnotherMillion
@GettingAnotherMillion, big difference between calling up/down on the 1D and doing so on the 1H ;)

In fact you are in agreement as @Yarr is also calling a likely retest of low 100's in the near term.
Reply
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