Hi Traders! Ethereum short term forecast update and follow up is here. On September 30th I shared this “Ethereum Short Term Forecast And Technical Analysis” post in our blog. 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
On the H1 chart, we have a key support zone that has formed based on the 100%(2726.95) Fibonacci expansion level of the first wave, the 61.8%(2715.28) Fibonacci expansion level of the second wave, and the bottom of the range. The price which was moving lower respected this key support zone and is bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 2786.63 and the second low that has formed at 2780.33 based on the MACD indicator. Then the price moved higher and broke above the last high at 2946.35 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently, it looks like a correction is happening. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. So based on all this, my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
On the H1 chart, based on the above-mentioned analysis my short-term view was bullish here and I was expecting the price to move higher further. After the bullish convergence and the breakout of the most recent downtrend line, the pullback that I was looking for happened, also there were no signs opposing this short term bullish view. The price then moved higher further as I expected it to and delivered a fantastic move to the upside!
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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