Ethereum Short Term Forecast And Technical Analysis

Hi Traders! Ethereum short term forecast and technical analysis is here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on Ethereum in this post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.

Ethereum D1(Daily) Chart Analysis – Bullish Trend Pattern, Double Wave Correction, Key Support Zone, Downtrend Line Breakout

On the daily chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently it looks like a correction has happened in the form of double wave to the downside. Also, the price which was moving lower reached a key support zone that has formed based on the 61.8%(1689.91) Fibonacci expansion level of the first wave of this correction and the 50%(1616.51) Fibonacci retracement level of the bullish trend pattern. The price respected this key support zone and is currently bouncing higher from this zone. Also, the price which is moving higher has broken above the most recent downtrend line, we may consider these as other evidences of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidence supporting this short term bullish view.

 

 

 

Ethereum H4(4 Hours) Chart Analysis – Bullish Trend Pattern, ADX Indicator, Two Strong Support Zones

On the H4 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Currently, it looks like a correction is happening, also we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below(marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.

 

 

Technical Analysis & Forecast Summary

Ethereum D1(Daily) Chart Analysis 

• Bullish Trend Pattern, Double Wave Correction, Key Support Zone, Downtrend Line Breakout

Ethereum H4(4 Hours) Chart Analysis 

• Bullish Trend Pattern, ADX Indicator, Two Strong Support Zones

Trading Tips