Ethereum Just Broke Out of its Consolidation...or did it?
As we suggested earlier today, Ethereum broke out of its consolidation zone to the upside. It managed to close above on the 4-hourly which is significant. However, it was not able to close above the 0.382 retracement level. It did exceed the level briefly before reversing below in the candlestick which is yet to close. If the Fibonacci level is strong enough as resistance, it could be that this was a false breakout of the consolidation zone, and the market may soon return to it.
This isn't a particularly strong bearish sign yet. The market is still above the consolidation zone, and hasn't yet closed below the 0.382 level. It's likely that the 0.382 level will act as short term resistance, causing the market to hover around where it is briefly before continuing into a new bullish trend following the breakout.
For the short term, the most important events to consider are whether the market has fallen back into the consolidation zone, and whether it has broken above the 0.382 retracement level. These events will be the most telling of the market's sentiment.
This isn't a particularly strong bearish sign yet. The market is still above the consolidation zone, and hasn't yet closed below the 0.382 level. It's likely that the 0.382 level will act as short term resistance, causing the market to hover around where it is briefly before continuing into a new bullish trend following the breakout.
For the short term, the most important events to consider are whether the market has fallen back into the consolidation zone, and whether it has broken above the 0.382 retracement level. These events will be the most telling of the market's sentiment.