What does the daily chart say?
The daily chart is far from decisive. Since we are still in the channel, both options seem to be probable. But, personally, I would think that Ethereum has a bigger chance to decline in the price for several reasons. Comparing the dynamics of the latest uptrend and the latest downtrend it is very clear that the downward movement was much stronger. The upward movement created only a corrective move or bearish flag.
Read more: NZD/USD drops post-RBNZ decision
Moreover, the daily chart has not moved above any significant resistance. The price had a chance to do so around 3 600 dollars, but was rejected and retraced back down. As I mentioned before, both options are still on the table but I am more inclined to believe that the decline in price is more likely.
1D chart of Ethereum, Source: Author´s analysis, tradingview.com
What about coming hours?
Next few hours can bring us back to resistance of 3 151 – 3 191 dollars. At this point I would be expecting a retraction again. The latest 4h candle has already tested that level, but was rejected. But that does not mean that in the coming hours we will not try to break above it again.
For coming hours and days, I would be mostly looking for a retraction of this cryptocurrency back to the 2 809 – 2 849 dollars.
4hour chart of Ethereum, Source: Author´s analysis, tradingview.com
I cannot exclude the possibility of a rise, but the indicators and sentiment seem to be pointing more to a possibility of a decline. Both, the daily chart as well as the 4hour chart are pointing at that direction. The rise is thus possible, but much less likely.
Post has no comment yet.