Ethereum: Long Term Reversal Pattern Analysis 1W (Jul. 25)

Jul 25, 2020

X Force Global Analysis:


In this analysis, we explore Ethereum's weekly chart, exploring bullish proabilities through technical analysis.

Analysis

- The first thing we can spot is how oversold Ethereum (ETH) is from its all time high point.
- Ethereum has and has been dropping for almost over a year, having bottomed out at around 83 USDT
- In doing so, it has created an Adam and Eve pattern, a well known bullish reversal pattern
- The neckline of the pattern is located at 370 USDT, marked by the dotted green horizontal line
- We have seen prices break out from the descending trend line resistance, marked by the dotted white line
- This indicates that Ethereum has completed its phase of consolidation from a descending triangle pattern that has formed during a downtrend
- Other signs of bullishness can be shown through the Exponential Moving Average Ribbon and Ichimoku Cloud
- The EMA Ribbon has formed a golden cross for the first time, marking the beginning of a potential bullish rally
- Prices are also trading above the EMA ribbon, indicating strong support
- It's also important to note that we have broken above, and are currently trading above the Ichimoku cloud as well
- Based on the long term Fibonacci retracement, we could expect strong resistance at 400 USDT
- Combining all evidence with the Adam and Eve pattern, we could technically expect the pattern to play out up to 760 USDT for the long term


What We Believe

We believe that Ethereum's outlook is extremely bullish. While is is temporarily lacking momentum due to recently having broken out, technical evidence for the long term suggests probabilities for a bullish rally with huge upside potential.

Trade Safe.