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!
Ethereum H4(4 Hours) Chart Analysis – Range
On the H4 chart, after the first leg to the upside, currently, it looks like a correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached the bottom of this range, respected it, and bounced higher from this zone. Basically, I expect the price to create one more leg to the upside after this correction. Also, currently, there are no signs opposing this short-term bullish view. So, everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short-term bullish view.
Ethereum H1(1 Hour) Chart Analysis – Key Support Zone, Bullish Convergence, Downtrend Line Breakout
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.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Technical Analysis & Forecast Summary
Ethereum H4(4 Hours) Chart Analysis
- Range
Ethereum H1(! Hour) Chart Analysis
- Key Support Zone, Bullish Convergence, Downtrend Line Breakout
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 short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
