Hi Traders! Ethereum forecast update and follow up is here. On February 25th I shared this “Ethereum Short Term Sell Idea With Two Possible Scenarios” post in Trading View. 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
Ethereum H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my short-term view was bearish here and I was expecting the price to move lower based on the two possible scenarios. The price action followed my analysis and moved as per scenario 1. The price moved lower from the current zone and delivered an excellent move to the downside until it was blocked by a bullish divergence.
On the M15 chart, the market provided us with various facts supporting the bearish view. After the breakout of the most recent uptrend line on the H1 chart, we had a pullback with the price retesting this breakout. This H1 chart pullback happened in the form of an ABCD pattern on the M15 chart with the price creating a bearish divergence between the first high that has formed at 1655.57 and the second high that has formed at 1670.16 based on the MACD indicator The price then moved lower and broke below the most recent uptrend line. We may consider these as facts provided by the market supporting the bearish view, also there were no signs opposing this bearish view. Then as you can see in the screenshot below how the price moved lower further and provided an excellent move to the downside.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted at us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
