ETHUSD Bearish Divergence or Continuation?
Hello Traders,
Hope your enjoying your Sunday!
Today’s chart will be an update on ETHUSDT paring, potential bearish divergence or a continuation?
Points to consider
- Current parabola trend
- Consecutive Higher Lows in place
- Respected resistance
- Testing local support (Potential New Higher Low)
- RSI coming into apex
- Stochastics in lower levels
- EMA’s giving price resistance
- Volume Climax
- VPVR showing low volume of transactions
Ethereum has had an impressive run in the past couple weeks as the charts show us a clear parabola that is potentially showing signs of topping out.
ETH respected its upper structural resistance and retraced back to the .236 Fibonacci Level, which is the current local support. This support is quite strong as it is in confluence with the parabola trend (Purple Line), the .236 Fibonacci Level and current potential local support (Orange Box).
This is quite similar to the previous orange box where price consolidated on the .786 Fibonacci Level with the Parabola line as support before the next impulse move up…
An impulse move up would increase the probabilities of creating an ascending triangle formation in the near future – which is usually a continuation pattern…
There are signs showing that ETH has a greater probability of correcting as we have a bearish divergence in the chart. Price managed to put in higher highs as the RSI puts in lower highs consecutively. The RSI is also approaching its apex zone; currently its testing its own local resistance, a bounce could be probable…
The EMAs are giving price resistance due to the recent bear cross; this is quite bearish as we see other indicators such as the Stochastics being projected downwards. A break of current local support will allow bears a greater control as we see the VPVR showing a shallow area of transactions under current the Fibonacci Level.,,
Overall,
A break of the parabola, local support and Fibonacci level will be quite bearish, a retesting of the .618 Fibonacci is more probable
A respect of the parabola, local support and Fibonacci level will prove bullish, creating a potential ascending triangle (confirmation on third touch), which is quite similar to previous price action…
What are your thoughts? Will a correction be more probable of a continuation?
Please leave a like and comment
And remember
“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.” - Michael Marcus
Hope your enjoying your Sunday!
Today’s chart will be an update on ETHUSDT paring, potential bearish divergence or a continuation?
Points to consider
- Current parabola trend
- Consecutive Higher Lows in place
- Respected resistance
- Testing local support (Potential New Higher Low)
- RSI coming into apex
- Stochastics in lower levels
- EMA’s giving price resistance
- Volume Climax
- VPVR showing low volume of transactions
Ethereum has had an impressive run in the past couple weeks as the charts show us a clear parabola that is potentially showing signs of topping out.
ETH respected its upper structural resistance and retraced back to the .236 Fibonacci Level, which is the current local support. This support is quite strong as it is in confluence with the parabola trend (Purple Line), the .236 Fibonacci Level and current potential local support (Orange Box).
This is quite similar to the previous orange box where price consolidated on the .786 Fibonacci Level with the Parabola line as support before the next impulse move up…
An impulse move up would increase the probabilities of creating an ascending triangle formation in the near future – which is usually a continuation pattern…
There are signs showing that ETH has a greater probability of correcting as we have a bearish divergence in the chart. Price managed to put in higher highs as the RSI puts in lower highs consecutively. The RSI is also approaching its apex zone; currently its testing its own local resistance, a bounce could be probable…
The EMAs are giving price resistance due to the recent bear cross; this is quite bearish as we see other indicators such as the Stochastics being projected downwards. A break of current local support will allow bears a greater control as we see the VPVR showing a shallow area of transactions under current the Fibonacci Level.,,
Overall,
A break of the parabola, local support and Fibonacci level will be quite bearish, a retesting of the .618 Fibonacci is more probable
A respect of the parabola, local support and Fibonacci level will prove bullish, creating a potential ascending triangle (confirmation on third touch), which is quite similar to previous price action…
What are your thoughts? Will a correction be more probable of a continuation?
Please leave a like and comment
And remember
“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.” - Michael Marcus
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