⚡️ Hello everyone! Over the past week, the market has been actively correcting, which, ironically for ETH, coincided with reaching the $3,650 level, where its 5-year resistance line is located.
This is obviously a powerful level, which the price already broke through in December last year, but after spending less than a week above it, it went into correction.
If the price can really consolidate above this level, it will open the way for tremendous growth. Even $5,000 will seem like a joke.
⚙️ But is there a real chance of this happening? Let's take a look:
During its growth, ETH moved extremely sharply and powerfully, forming two gaps from below at $3,560–2,987 and $2,483–1,848. As we know, in 99% of cases, gaps close sooner or later. So there is a high probability of a downward movement. In addition, one of the gaps has already partially closed.
Volume - purchase volumes continue to diverge from the price, indicating waning interest in ETH. This often leads to a trend reversal.
Money Flow - Interestingly, liquidity continues to flow into the asset, unlike Bitcoin. And now it is at a fairly high level. In addition, there is harmony with the price.
📌 Conclusion:
Right now, ETH looks strong enough to finally break through resistance and open the way to new heights. However, this will also depend on the overall state of the market.
No matter how strong ETH is, if Bitcoin goes into correction, ETH will go with it.
But if we remove all emotions and thoughts and look at it technically, ETH has reached five-year resistance. And good traders buy on support and sell on resistance.
Have a nice day, everyone!
This is obviously a powerful level, which the price already broke through in December last year, but after spending less than a week above it, it went into correction.
If the price can really consolidate above this level, it will open the way for tremendous growth. Even $5,000 will seem like a joke.
⚙️ But is there a real chance of this happening? Let's take a look:
During its growth, ETH moved extremely sharply and powerfully, forming two gaps from below at $3,560–2,987 and $2,483–1,848. As we know, in 99% of cases, gaps close sooner or later. So there is a high probability of a downward movement. In addition, one of the gaps has already partially closed.
Volume - purchase volumes continue to diverge from the price, indicating waning interest in ETH. This often leads to a trend reversal.
Money Flow - Interestingly, liquidity continues to flow into the asset, unlike Bitcoin. And now it is at a fairly high level. In addition, there is harmony with the price.
📌 Conclusion:
Right now, ETH looks strong enough to finally break through resistance and open the way to new heights. However, this will also depend on the overall state of the market.
No matter how strong ETH is, if Bitcoin goes into correction, ETH will go with it.
But if we remove all emotions and thoughts and look at it technically, ETH has reached five-year resistance. And good traders buy on support and sell on resistance.
Have a nice day, everyone!
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.
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.