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 – Strong Resistance Zone, Potential Bearish Divergence, Engulfing Candle Pattern, Parabolic Sar
On the daily chart, the price which is moving higher has reached a strong resistance zone, respected it and is currently bouncing lower from this zone. Also, we could see that the price has created a potential bearish divergence between the first high that has formed at 3328.93 and the second high that has formed at 4365.39 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we also have a bearish engulfing candle pattern that has formed which we may consider as another evidence of bearish pressure. Also, looking at the Parabolic Sar we could see that the dot is 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 H1(1 Hour) Chart Analysis – Range Breakout, Bearish Divergence, Lower Lows, ADX Indicator
On the H1 chart, after the strong bearish move the price was moving inside a range. The price which was respecting this range so far has moved lower and has currently broken below the bottom of this range, which we may consider as evidence of bearish pressure. Also, we have a bearish divergence that has formed between the first high that has formed at 4252.01 and the second high that has formed at 4303.16 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 4085.10 thus creating lower lows which we may consider as another evidence 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 yet another evidence of bearish pressure. Currently it looks like a pullback is happening, until the strong resistance zone holds I expect short term bearish moves to happen here.
Technical Analysis & Forecast Summary
Ethereum D1(Daily) Chart Analysis
- Strong Resistance Zone, Potential Bearish Divergence, Engulfing Candle Pattern, Parabolic Sar
Ethereum H1(1 Hour) Chart Analysis
- Range Breakout, Bearish Divergence, Lower Lows, ADX Indicator
Trading Tips
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Arvinth Akash
Traders Academy Club Team
