2019-12-07 2018-02-21 Analysis for ETHUSD: Ethereum Runs Out of Charge? 21.02.2018 Mikhail Hypov 2019-12-072018-02-21

According to Ethereum ticker behavior, it is obviously tired of growing and needs some rest. Will market makers allow it to be corrected for recharging?

Attention! In this post the following types of analysis are applied: indicators, trend, Fibonacci levels, fractal analysis and trading volume analysis.

Dear friends,

I continue following Ethereum price.

For better, or for worse, the market hasn’t followed the way that seemed to me the most likely and natural for it. Nevertheless, it has reached the marked target at the level of about 920 USD.

Remember, what it all started out. A week ago, there was the strong yellow arc on Ethereum way, its breakout suggested high volatility in the directions of both bears and bulls.

The worst that trend could do in this situation was to go nowhere and continue trading flat. That has happened in the end.

This situation is absolutely unnatural for Ethereum, so I can explain such a behavior by the artificial holding the price above the level of 900 USD

In the chart above, we see the market trying to start correction, but it is totally bought out near the important level.

As a result, instead of forming something like double bottom pattern, to pave the way for a normal, natural growth, exhausted Ethereum starts pointing downwards, completing the second shoulder of the well-known pattern.

I think, that all is not by chance. I can suggest that manipulators deliberately built this pattern to create tension.

If the right shoulder is broken out, the correction target will be somewhere near the level of 835 USD.

This drop can be an excellent opportunity to stock up for large amounts of money. If the strong resistance to the fall is created, it will show the market strength and provide a good momentum for the rise. In the end, manipulators and all, who are following them, will gain a lot.

In the chart above we see that Ethereum is still trading in a very wide descending channel. If head and shoulders pattern is implemented, excitable traders may imagine the drop down to the levels of about 600 USD, triggering a real Panic Sale.





If we address fractal analysis, the last move well fits into the inverse fractal model

The recent price rise a little extended Trident element, however, the target for Origin is still near the level of 800 USD.

While I was writing the article at night, Ethereum managed to go further inside Ichimoku cloud (see in the chart above).

We see, the lower cloud border is also near the level of 800 USD (775 USD, to be more precise :)

In the chart above, it is clear that vertical volume indicates the strong support at the level of 860 USD, the next one is at 840, so, Ethereum will hardly fall.

Only look at the buyout volume (green circle)!

This amount indicates manipulators’ strong support, so, they will hardly allow Ethereum to fall lower than 800.

What's in the end?

Finally, summing up all the above, I expect the next target for Ethereum to be at the level of 835 USD.

It very much depends on whether market makers will be able to hold the market at this level.

If they fail, the next low will be near the level of 760 USD, where the price is likely to rebound from the lower border of the traded channel.

The most interesting is going to happen later, at the end of February, when the market will face the choice of where to go.

On the one hand, we have the level of about 650 USD being not closed, and the market is looking this way. On the other hand, Ethereum has such a strong support, that even level 760 seems to be the limit.

I’ll tell you straight away that the fall lower than 760 is unlikely, but I suggest we shouldn't guess and should wait until the end of February. We shall monitor trading volume and the ticker behavior when the key levels are approached. Besides, don’t forget to monitor the divergences and the general development of the wave structure, as well as the whole fractal model.

I wish you good luck and good profits!

P.S. Did you like my article? Share it in social networks: it will be the best “thank you" :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

Useful links:

I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.

Use my promo-code BLOG for getting deposit bonus 50% on LiteForex platform. Just enter this code in the appropriate field while depositing your trading account.

Telegram chat for traders: https://t.me/liteforexengchat. We are sharing the signals and trading experience

Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders https://t.me/liteforex

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.