Ethereum bullish prospect near a major support
This is the 15-minute chart of BINANCE:ETHUSDT.
The bar 1 on the chart is a strong bear reversal bar after a buy climax and possibly a failed final flag at a lower timeframe, so the high of the bar would likely become a major resistance. This is confirmed after 3 attempts to reach the resistance has failed to break out.
Yesterday, Bitcoin has crashed to 29.5k due to bad news (which is irrelevant for traders) and also brought Ethereum price down to a new low that did not go below the lowest low in this chart. Subsequently, Ethereum price surged, before decreasing down to the bar 1 high. Bar 2 is a part of the leg up after a two-legged move down to that key price point, which has likely become a new major support.
There was also a bull trend before the move. Also, the second leg down has failed to break below the support level, which may be a part of a small pullback and bear flag, and traders should only look to buy when the price reaches support. Furthermore, the follow-through buying indicates that bulls are eager to buy once there is any signal of resumption of the previous trend.
It is likely that Ethereum will at least retest the extreme of the first major bull trend leg, and if the buying pressure remains strong, the trend may continue.
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Disclaimer: I consider analyzing charts to be a fun mind puzzle, and I am still learning how to analyze the markets with higher accuracy. I cannot guarantee that a certain asset will follow my prediction.
Additionally, the second move down formed a trend channel line, and the low that tested the support line is a trend channel line overshoot, which can be seen in the 5m timeframe. Also, in 5m timeframe, there is a small wedge top, but there was no follow-through selling. But since I am analyzing the 15m chart, and traders should only focus on a single chart, that is irrelevant.
The bar 1 on the chart is a strong bear reversal bar after a buy climax and possibly a failed final flag at a lower timeframe, so the high of the bar would likely become a major resistance. This is confirmed after 3 attempts to reach the resistance has failed to break out.
Yesterday, Bitcoin has crashed to 29.5k due to bad news (which is irrelevant for traders) and also brought Ethereum price down to a new low that did not go below the lowest low in this chart. Subsequently, Ethereum price surged, before decreasing down to the bar 1 high. Bar 2 is a part of the leg up after a two-legged move down to that key price point, which has likely become a new major support.
There was also a bull trend before the move. Also, the second leg down has failed to break below the support level, which may be a part of a small pullback and bear flag, and traders should only look to buy when the price reaches support. Furthermore, the follow-through buying indicates that bulls are eager to buy once there is any signal of resumption of the previous trend.
It is likely that Ethereum will at least retest the extreme of the first major bull trend leg, and if the buying pressure remains strong, the trend may continue.
---
Disclaimer: I consider analyzing charts to be a fun mind puzzle, and I am still learning how to analyze the markets with higher accuracy. I cannot guarantee that a certain asset will follow my prediction.
Additionally, the second move down formed a trend channel line, and the low that tested the support line is a trend channel line overshoot, which can be seen in the 5m timeframe. Also, in 5m timeframe, there is a small wedge top, but there was no follow-through selling. But since I am analyzing the 15m chart, and traders should only focus on a single chart, that is irrelevant.