Technical Analysis – Ethereum Short Term Forecast

Hi Traders! Ethereum short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, 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!

You can find the video explanation of this idea here

Ethereum H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Key Resistance Zone, Uptrend Line Breakout, Range, Parabolic Sar, ADX Indicator

On the H4 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a flat correction is happening in the form of a range. While measuring this bearish trend pattern using the Fibonacci retracement tool we could see that the 38.2%(2751.77) – 50%(3060.27) Fibonacci retracement zones coincide with the top of the range and the 61.8%(2893.64) Fibonacci expansion level of the first wave, which makes this area a key resistance zone for us. The price which was moving higher reached this zone, respected it and is currently moving lower. In addition to this the price which is moving lower has broken below the most recent uptrend line, which we may consider as yet another evidence of bearish pressure.

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

Also, we could see that the price was moving inside a small range, this range is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting this range so far has currently broken below the bottom of it and is holding below it, we may consider this as yet another evidence of bearish pressure. Looking at the Parabolic Sar we could see that the dots are above the price which is yet another evidence favoring the bears. In addition to this, the ADX indicator gave a bearish signal here 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. So based on all this my short term view remains bearish here and I expect the price to move lower further.

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.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

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Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

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