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!
Ethereum H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Hidden Divergence, ADX Indicator
On the H4 chart, the price is moving inside a triangle pattern which started on 20th February 2021. We have a key resistance zone that has formed based on the 100% Fibonacci expansion level of the first wave and the top of this triangle pattern. The price has currently reached this key resistance zone, respected it and is moving lower. We also have a hidden bearish divergence that has formed between the first high that has formed on 13th March 2021 and the second high that has formed on 27th March 2021 based on the MACD indicator followed by a continuing bearish divergence which we may consider as evidences of bearish pressure. In addition to this the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as another evidence of bearish pressure. We may now move down to one timeframe lower and see if we can find evidences supporting this bearish view.
Ethereum H1(1 Hour) Chart Analysis – False Breaks, Bearish Divergence, Parabolic Sar
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.
Technical Analysis & Forecast Summary
Ethereum H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Hidden Divergence, ADX Indicator
Ethereum H1(1 Hour) Chart Analysis
- False Breaks, Bearish Divergence, Parabolic Sar
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Yordan Kuzmanov
Chief Trader at the Traders Academy Club
