Hello, Traders Investors And Community, welcome to this analysis where we are looking at the recent events, the current price-structure-formation and what we can expect from the next days and hours in the major second-largest market-cap cryptocurrency ethereum and invented by the super-nerd vitalik with an iq of 1056 who plans to launch ethereum second version which is expected to boost the demand in the ethereum network, if this is true we can not say at the moment but we can rely on the technical analysis for our purpose to profit out of potential outcomes and take the appropriate action when it is necessary. As the whole cryptocurrency space showed downside volatility in the last days where it is building a range currently there are some important conclusions and details I detected in the market and therefore ethereum is showing some important signals which can determine the further outcome.
As you can see in my chart ethereum is trading in this huge and paramount parallel descending channel where we touched the lower boundary after the breakdown from 229 to 216.5 which provided a signal on the short side because ethereum fell below the significant 200-EMA bearishly which was certainly a sign for more downside to come, as ethereum is now in a more or less recovery of the downmove it is building an overall range between the 216.5 and the 228.5 level here which can confirm bearish or bullish. Besides that it is important to keep in mind that ethereum just aprpoached the middle line of the channel which is certainly an important resistance, together with the 200-EMA and the 55-EMA it is building a coherent resistance structure here which can be confirmed as those when touched again in this level this means the price will have difficulties to move above this level and close above it.
Failed-EMA-Crossover Scenario And Bullish Confirmation (4-Hour Timeframe):
Furthermore, ethereum has an important key-level at the 228.5 which shows up in the higher timeframes which can proof as significant resistance, in this case taking all these factors into consideration we can come to the conclusion that ethereum is showing currently a more bearish environment than bullish with the strong resistance levels ahead and possible declines incoming but that does not mean ethereum is completely bearish at the moment this does only mean that the bearish scenario is more possible right now which can change with a definite stabilization in this range and a successful test of the higher levels in this case it is important to hold the last meaningful support factor which is the 400-EMA you can see marked in green in my chart which needs to confirm sustainable as support, when this support does not hold ethereum can show bearish increase to the downside and a test of lower levels within a high possible spectrum as you can see it in my chart and the more likely scenario A.
Compared to the rest market ethereum is definitely a weaker part at the moment as it is showing more bearish facts than the major bitcoin which is still holding above important EMAs and strong support levels, this situation is underlining the theory which I already mentioned and shows a sorting out of currencies where some showing bullish while others are bearish which will increase the spread between them further. Therefore it will be interesting how things play out here and if the more likely bearish scenario plays out rightfully. Friends, I see many people calling for a immediate continuation and a definite bull market for sure with break of support lines and a new all-time-high in two weeks which is really a specualtive approach at the moment and as sophisticated traders we should always keep an cool head to wage the possibilties, opportunities and risks in the right manner this means to be prepared also for the way around when the market does not show the expected outcome and be prepared for possible trend changes as they happen in order to advance and take an added value in todays global markets.
In this manner, thank you for watching, support for more market insight, have a great day and all the best my friends! ;)
Success is a science, if you have the conditions, you get the result.
Information provided is only educational and should not be used to take action in the markets.
As you can see in my chart ethereum is trading in this huge and paramount parallel descending channel where we touched the lower boundary after the breakdown from 229 to 216.5 which provided a signal on the short side because ethereum fell below the significant 200-EMA bearishly which was certainly a sign for more downside to come, as ethereum is now in a more or less recovery of the downmove it is building an overall range between the 216.5 and the 228.5 level here which can confirm bearish or bullish. Besides that it is important to keep in mind that ethereum just aprpoached the middle line of the channel which is certainly an important resistance, together with the 200-EMA and the 55-EMA it is building a coherent resistance structure here which can be confirmed as those when touched again in this level this means the price will have difficulties to move above this level and close above it.
Failed-EMA-Crossover Scenario And Bullish Confirmation (4-Hour Timeframe):
Furthermore, ethereum has an important key-level at the 228.5 which shows up in the higher timeframes which can proof as significant resistance, in this case taking all these factors into consideration we can come to the conclusion that ethereum is showing currently a more bearish environment than bullish with the strong resistance levels ahead and possible declines incoming but that does not mean ethereum is completely bearish at the moment this does only mean that the bearish scenario is more possible right now which can change with a definite stabilization in this range and a successful test of the higher levels in this case it is important to hold the last meaningful support factor which is the 400-EMA you can see marked in green in my chart which needs to confirm sustainable as support, when this support does not hold ethereum can show bearish increase to the downside and a test of lower levels within a high possible spectrum as you can see it in my chart and the more likely scenario A.
Compared to the rest market ethereum is definitely a weaker part at the moment as it is showing more bearish facts than the major bitcoin which is still holding above important EMAs and strong support levels, this situation is underlining the theory which I already mentioned and shows a sorting out of currencies where some showing bullish while others are bearish which will increase the spread between them further. Therefore it will be interesting how things play out here and if the more likely bearish scenario plays out rightfully. Friends, I see many people calling for a immediate continuation and a definite bull market for sure with break of support lines and a new all-time-high in two weeks which is really a specualtive approach at the moment and as sophisticated traders we should always keep an cool head to wage the possibilties, opportunities and risks in the right manner this means to be prepared also for the way around when the market does not show the expected outcome and be prepared for possible trend changes as they happen in order to advance and take an added value in todays global markets.
In this manner, thank you for watching, support for more market insight, have a great day and all the best my friends! ;)
Success is a science, if you have the conditions, you get the result.
Information provided is only educational and should not be used to take action in the markets.
Note
Bullish Crossover 2.5 Months Ago Showing The Importance Of The Current EMA-Situation In Ethereum. Note
Information provided is only educational and should not be used to take action in the markets.
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►✅JOIN THE BEST+ TOP TELEGRAM TRADING CHANNEL: t.me/VincePrinceForexGoldStocks
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.