Hi Traders! Ethereum forecast follow up and update is here. On March 31st I shared this “Ethereum Forecast And Technical Analysis” post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
On the H1 chart the price which was moving higher has created multiple false breaks with a bearish divergence that has formed between the first high that has formed at 1837.75 and the second high that has formed at 1860.20 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this based on the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. Also currently there are no signs opposing this bearish view. So everything looks good here for the bears and based on all this my short term view here is bearish.
Ethereum H1(1 Hour) Chart Current Scenario
Based on the above mentioned analysis my view was bearish here and I mentioned that until the key resistance zone holds I expect the price to move lower further. The price action didn’t follow my analysis here and this idea failed. After the multiple false breaks and bearish divergence I was expecting the price to move lower further from the key resistance zone but the price moved higher, broke above the key resistance zone and is currently holding above it, thus invalidating this bearish view. My current view on Ethereum is neutral.
So traders, when it comes to trading we should keep in mind that losses are part of trading and we can’t expect every trade to go as per our plan and provide us profits. In trading, we can’t avoid losses but in order to be successful in trading, we should know how to cut losses early and how to manage the trade when the price goes in the opposite direction.
Note: You can watch our webinar on how to cut losses early here
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
