Here we have ETH/USDT on the 8H chart.
ETH/USDT has been trading the downside considerably after a peak ignited a correction of the 29th January. Price has recently been trading within a structure since between a side-wards resistance line at 1034 (at current levels), and a horizontal at 566, that is still in to play.
Price has bounced on horizontal support. Price has had a clear higher high, and looks like it is impulsive.
I am expecting Ethereum to begin an up move. Before this it's highly likely that price action will retest the horizontal at 580.
This trade could play out in 2 ways, I have outlined these below:
-Price has an impulsive up move to the side-wards resistance to 1034 in one swing move. When it does, it could break out of the resistance, and use it as a new support, before rallying to the upside target at 1440.
-Price finds resistance at current levels (Resistance on the 20 moving average), and retests the horizontal at 566, before eventually finding more momentum to the upside, hitting resistance target, or perhaps the extended target zone at 1440.
Bare in mind, that a retest of horizontal would show less momentum than I believe is ideal for the target zone move to 1440. If price breaks out of resistance and retests it as support, it is EXTREMELY likely that the target zone to 1440 could be achieved.
If price resists on the 20 moving average and retests the support, this might show short term weakness yet again.
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