ETHUSDT: Re-accumulation
Starting from the bottom left, price went up, establishing a significant high. It then entered into a 3 year long accumulation period (the large green box). Inside it we have a downtrend, a trading range, and an uptrend. The uptrend continued and broke the previous significant high, completing the rounding bottom pattern. After that it went into price discovery, establishing a new high, then came down to retest the breakout area and got rejected.
What we are left with is a new consolidation area (small green box) sitting on top of a previous one. Is this consolidation area for re-accumulation or distribution? Given that we’re currently in an uptrend, price is above EMA8 and EMA21, and held tightly above a previous consolidation area spanning 3+ years. IMHO, this isn’t a distribution. Rather, it is a re-accumulation area, where the market seeks liquidity before an easy-to-see directional trend is developed. Assuming the there is an upcoming uptrend and the market is still bullish by then, what would be the minimum upside price projections for the rounding bottom pattern? 1 : 1 would land us at $2810, and 1:2 at $4175.
My measurement could be off but you get my point.
What we are left with is a new consolidation area (small green box) sitting on top of a previous one. Is this consolidation area for re-accumulation or distribution? Given that we’re currently in an uptrend, price is above EMA8 and EMA21, and held tightly above a previous consolidation area spanning 3+ years. IMHO, this isn’t a distribution. Rather, it is a re-accumulation area, where the market seeks liquidity before an easy-to-see directional trend is developed. Assuming the there is an upcoming uptrend and the market is still bullish by then, what would be the minimum upside price projections for the rounding bottom pattern? 1 : 1 would land us at $2810, and 1:2 at $4175.
My measurement could be off but you get my point.
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