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 Traders Academy 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 – Heikin Ashi Candles, Strong Resistance Zone, Bearish Hidden Divergence, Parabolic Sar
On the daily chart, based on the Heikin Ashi candles we can see that, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Currently it looks like a correction is happening and the price which is moving higher has reached a strong resistance zone, respected it and is bouncing lower from this zone. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 2013.58 and the second high that has formed at 1644.58 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, based on the Parabolic Sar we could see that the dots are above the price which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
Ethereum H4(4 Hours) Chart Analysis – Bearish Divergence, Lower Lows, Stochastic Oscillator
On the H4 chart, we have a bearish divergence that has formed between the first high that has formed at 1627.90 and the second high that has formed at 1661.77 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 1461.89 thus creating lower lows which we may consider as another evidence of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as yet another evidence of bearish pressure. Currently it looks like a correction is happening. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
Ethereum D1(Daily) Chart Analysis
- Heikin Ashi Candles, Strong Resistance Zone, Bearish Hidden Divergence, Parabolic Sar
Ethereum H4(4 Hours) Chart Analysis
- Bearish Divergence, Lower Lows, Stochastic Oscillator
Trading Tips
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Arvinth Akash
Traders Academy Club Team
