ETH/USDT: Weekly Wyckoff Accumulation Perspective 1W (Jul. 27)

X Force Global Analysis:


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In this analysis, we explore Ethereum's weekly chart, and its potential upside through the Wyckoff accumulation model.

Analysis

- In essence, the weekly chart shows a double bottom formation, which can be dissected through the Wyckoff accumulation model.

Wyckoff Accumulation Schematic Explained

- PS (preliminary support): This is where substantial buying begins to provide pronounced support after a prolonged down-move.
- SC (selling climax) : This is the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom.
- AR (automatic rally): This occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering.
- ST (secondary test): This is the point in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC .
- SOS (sign of strength): A price advance on increasing spread and relatively higher volume .
- LPS (last point of support): The low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume .
- BU (back-up): A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new trading range at a higher level.

- Phase A: Phase A marks the stopping of the prior downtrend.
- Phase B: In Wyckoffian analysis, Phase B serves the function of “building a cause” for a new uptrend. Institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup
- Phase C: It is in Phase C that Ethereum's price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked up.
- Phase D: If we are correct in our analysis, what should follow is the consistent dominance of demand over supply.
- Phase E: In Phase E, Ethereum leaves the trading range, and demand is in full control with the markup obvious to everyone

What We Believe

We believe that on the long term weekly chart, Ethereum is bound for further upside, as it has just finished providing confirmation for a prolonged double bottom pattern.

Let us know what you think in the comment section below


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