When looking at daily chart, we can see that we are still in downtrend. We have still remained under the trendline, slowly moving downwards. Past few days have shown us some potential in form of higher lows and the formation of a triangle at 4H shows also some promise. However, triangle is usually 50 – 50. What we can see is that we will be probably witnessing a major move in coming days.
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It can either be a movement above trendline where we would break the structure and after few months make a significant upside move or we remain in trend and technically fall to the levels of 1 682 – 1 875 USD. Looking at the overall structure, volumes and the chart as such, this level seems to be providing the best and strongest support.
Ethereum Daily Chart, Source: Author´s analysis, tradingview.com
In my eyes, this is one of those classic 50 – 50 situations. Both movements would make sense. Personally, I still believe that we will come down and test the highlighted support at some time this year, which means that I would wait for some time with long-term buying opportunities.
The weekly chart can support this since after a very strong uptrend ETH has not seen a major correction. This is also one of the reasons why I would wait with any long-term purchases, since this does not have to be the end of the downward movement.
This timeframe also shows us the same support of 1 682 – 1 875 USD, where the volumes are the biggest and other key indicators are pointing at this way as well. I believe this is going to be a very strong price level that I believe will sooner or later be tested again. If this support does not hold, we can see a more significant downward trend.
Ethereum Weekly Chart, Source: Author´s analysis, tradingview.com
I do not think that Ethereum has formed its bottom yet. Even if it looks like it from the short-term perspective, I believe that in the span of this year we will visit the levels of 1 682 – 1 875 USD again.