Hello all, today I'm not going to cover any movement about bitcoin. I will cover the other crypto asset that bring attention to me. Here is the Ethereum chart work as usual.
Ethereum currently is still trending right inside the up trend channel that has been formed since March 16th, 2020 . Current price is still trending right above the median line of the channel which is acting as short term support which has held the price from further drop. With this current movement, I see a potential bullish flag is in play inside this up trend channel.
Based on the previous price action that has already occured inside this uptrend channel, we can see that they are having similar characteristic with this current pattern. Which after they consolidation pattern (whether it's a triangle or the flag pattern) and it touches the support trend line, they were bouncing from the support and make a confirmation of those bullish action. Currently, the price is trending at its consolidation pattern and trending at the median line which acts as a support trend line which means there are high probability of the price to show us some bounce from current level.
The last thing I want to cover is that at this 4 hours chart, the RSI has given us the confirmation of bearish divergence with a lower high pattern on RSI but higher high on the chart. But, during this movement, we have to check at grand cycle too which is the daily chart in this case. On the daily chart we have seen the first peak of the RSI that has entered the overbought region but, we haven't seen the 2nd peak that enters the overbought region yet. So, there is a high probability that there will be a 1 more peak of RSI to occur in the overbought region on this 4 hours time frame.
For the target if this bullish flag has been confirmed, I'll target the $240 region as the confluence zone between the last level of the fibonacci retracement, longer term resistance trend line and the upper line of current up trend channel.
Ethereum currently is still trending right inside the up trend channel that has been formed since March 16th, 2020 . Current price is still trending right above the median line of the channel which is acting as short term support which has held the price from further drop. With this current movement, I see a potential bullish flag is in play inside this up trend channel.
Based on the previous price action that has already occured inside this uptrend channel, we can see that they are having similar characteristic with this current pattern. Which after they consolidation pattern (whether it's a triangle or the flag pattern) and it touches the support trend line, they were bouncing from the support and make a confirmation of those bullish action. Currently, the price is trending at its consolidation pattern and trending at the median line which acts as a support trend line which means there are high probability of the price to show us some bounce from current level.
The last thing I want to cover is that at this 4 hours chart, the RSI has given us the confirmation of bearish divergence with a lower high pattern on RSI but higher high on the chart. But, during this movement, we have to check at grand cycle too which is the daily chart in this case. On the daily chart we have seen the first peak of the RSI that has entered the overbought region but, we haven't seen the 2nd peak that enters the overbought region yet. So, there is a high probability that there will be a 1 more peak of RSI to occur in the overbought region on this 4 hours time frame.
For the target if this bullish flag has been confirmed, I'll target the $240 region as the confluence zone between the last level of the fibonacci retracement, longer term resistance trend line and the upper line of current up trend channel.
Comment:
Now the price has broken out of the upper line of the channel and I'll wait for the confirmation of phase 2 of break out strategy and up we go