Hello traders, I hope you've all had a successful trading week.
Here we have ETH/USD on the 2H chart.
ETH/USD has been trading upwards since a downside correction paused on 10th April and began to correct. Price has recently been trading within a structure, between the horizontal support zone at 394.50, and at a side-wards resistance, at 440 (At current days level)
Price bounced of the side-wards support. When price is testing the support it is making higher lows. On the last retest of support on April 10, it is having clear higher lows on smaller timeframes as well, which indicates bullish momentum which was an early clue that price was going to breakout further higher.
I am expecting Ethereum to continue successfully breaking out. Before this, price will likely retest one of two support levels before the up move.
This trade could play out in 2 days, I have outlined these below:
-Price retests the side-wards support line at 409, before bouncing off to the upside to an upside target of 455. Price could break even higher if there is enough momentum.
-Price breaks lower, and does not retest the side-wards support zone and instead retests the horizontal support zone at 394, and goes to the upside at a later stage, before reaching it's upside target at 455.
Bare in mind, that price could move a lot further than the targets outlined above. The target above is merely an obstacle for price action as it is the previous swing high and a horizontal resistance.
If price retests the sidewards support line and bounces, this might indicate slight more weakness than if price immediately has an impulse leg and leaves structure behind. This is the behavior Ethereum exhibits when in a legitimate uptrend. When it is legitimately impulsive to upside, it tends to ignore retests.
I will updating this analysis if it receives more than 40 likes.
Here we have ETH/USD on the 2H chart.
ETH/USD has been trading upwards since a downside correction paused on 10th April and began to correct. Price has recently been trading within a structure, between the horizontal support zone at 394.50, and at a side-wards resistance, at 440 (At current days level)
Price bounced of the side-wards support. When price is testing the support it is making higher lows. On the last retest of support on April 10, it is having clear higher lows on smaller timeframes as well, which indicates bullish momentum which was an early clue that price was going to breakout further higher.
I am expecting Ethereum to continue successfully breaking out. Before this, price will likely retest one of two support levels before the up move.
This trade could play out in 2 days, I have outlined these below:
-Price retests the side-wards support line at 409, before bouncing off to the upside to an upside target of 455. Price could break even higher if there is enough momentum.
-Price breaks lower, and does not retest the side-wards support zone and instead retests the horizontal support zone at 394, and goes to the upside at a later stage, before reaching it's upside target at 455.
Bare in mind, that price could move a lot further than the targets outlined above. The target above is merely an obstacle for price action as it is the previous swing high and a horizontal resistance.
If price retests the sidewards support line and bounces, this might indicate slight more weakness than if price immediately has an impulse leg and leaves structure behind. This is the behavior Ethereum exhibits when in a legitimate uptrend. When it is legitimately impulsive to upside, it tends to ignore retests.
I will updating this analysis if it receives more than 40 likes.
Upside is likely for the near future.