Ethereum, Channel Establishment, Next Wave In Sight!
Hello Traders Investors And Community, Welcome to this analysis where we are looking at ethereums 1-hour timeframe perspective, the recent events, the current formational structure and what we can expect the next times from this major cryptocurrency pair. Since the similarly to other cryptocurrencies set in also with ethereum an important question is if ethereum manages to stabilize in the structure and form a reversal backing up from the declines seen before or if this is just a big set up to form the next wave to the downside, currently there are some preliminary significant structures forming where I detected the important levels and possible outcomes we should consider with ethreum and its destinations.
Looking at my chart you can watch ethereum forming this channel-formation here marked with the black channel and the initiated wave-count within it where ethereum already touched several times the upper and lower boundary forming this coherent channel, recently ethereum found some support at the lower boundary stabilizing the declines and marking the setup for the next wave to the upside which will be the third major wave namely the C wave, this wave will directly move into resistance which ethereum has at the upper boundary forming by the 400-EMA resistance in black and the upper boundary coming to a coherent resistance cluster where the possibility is high for a pullback into the reverse again.
When ethereum reached the upper boundary resistance-cluster and the pullback occurs this will firstly travel to the lower boundary again and test it which will be a crucial price-action for ethereum as there are basically two possible outcomes in this zone, first will set in when ethereum does not manages to stabilize with solid potential then a breakdown follows below the lower boundary which will increase the pressure to the downside, the second one will set in when ethereum manages to show the proper price-action when approaching the support and then move higher to test the upper levels again after which a breakout can set in, it will be highly interesting to watch ethereums further developments.
In this manner, thank you for watching, good day my friends, and support for more market insight.
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Information provided is only educational and should not be used to take action in the markets.