Ethereum, Volatility In Structure Can Edge Further Alignements!

23 באוג׳ 2020Hello Traders Investors And Community, welcome to this analysis about ethereum daily timeframe perspective, the recent events, the current formation importances, and what to expect next times in order to do not overspeculate the situation as this is often seen these days. The cryptocurrency market, as well as the major currencies, provided some solid growth the last weeks before going into the sideways range in which they are trading now, firstly on the front ethereum with an exceptionally high exponential movement providing a strong impulse wave which moved above several resistance levels into the range where it is trading now, this established bullishness cant be kept by side and there are some reasonable facts I detected providing a possible continuation of this established bullishness, nevertheless, there are important mechanisms ethereum has to confirm which we should consider in the current structure.

Looking at my chart you can watch there this major ascending-channel marked in blue which ethereum confirmed bullish to the upside with its protracted uptrend, this ascending-channel serving as an meaningful reference point for further support considerations here and has a good possibility to hold when tested. Currently, ethereum is moving in a moreover sideways range and correction which is normally seen after such high volatile movements. As you can watch in my chart it is currently forming the ABC correction wave count where it has the next significant support at the 61.8 % Fibonacci-level seen in my chart which is also coherently matching with the upper boundary and 100-EMA together building a support-cluster here where a bounce to the upside is within the high possible spectrum when ethereum approaches these levels next times to set up the major wave 5 of the wave count it is trading in.

Overall ethereum is in a situation where it is retracing the former established bullish move which can result into the next wave that can lead to the 1.618 % Fibonacci-extension-level seen in my chart, where the wave count firstly can stop to reverse as there are also strong resistance levels lying that can be confirmed when ethereum approaches these ranges. When this happens the upper boundary of the ascending blue channel will be the next initial support together with the orange support/resistance level marked in my chart, when ethereum approaches this it is important to hold them and don't fall into the channel and below the 100- or 200-EMA again because when this does happen the bearish pressure increases highly possible and ethereum will firstly visit lower levels within the structure, will be interesting how ethereum reacts into these ranges.

In this manner, thank you for watching, support for more market insight, all the best!
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Information provided is only educational and should not be used to take action in the market.