Ethereum's Potential for Correction in April
Hello friends!
I hope you had a profitable trading week so far.
This time, I will analyze a potential correction for Ethereum. Same for Bitcoin, I think ETH is due for a correction.
I see a potential reversal cooking. In bigger time frame (daily or weekly) it will only look like a correction. But in intraday timeframe, it might be a reversal signs and/or good short setup potential.
We can see that there was a bearish divergence in RSI formed. See the dashed white arrow. This indicates that bulls are weakening. These indicates that bears are ready to take action.
However, we need a second confirmation.
My analysis will be proven if the yellow bold line is broken. This will indicate that the price has formed a lower-low structure, which marks the start of a downtrend (at least in intraday timeframe)
Next Question: HOW LOW CAN ETH GO?
If you see at the daily timeframe , Ethereum forming a potential bullish megaphone.
If ETH is to go down, I think it might go to the lower part of the pattern (see white trendline)
But a possible reaction at the support in around 1511 USD is also possible
Should we see a bullish signal in those area, we can start buying/long up to 2000 or maybe 2100 USD.
Hope you like my analysis and don't forget to share your thoughts as well
I hope you had a profitable trading week so far.
This time, I will analyze a potential correction for Ethereum. Same for Bitcoin, I think ETH is due for a correction.
I see a potential reversal cooking. In bigger time frame (daily or weekly) it will only look like a correction. But in intraday timeframe, it might be a reversal signs and/or good short setup potential.
We can see that there was a bearish divergence in RSI formed. See the dashed white arrow. This indicates that bulls are weakening. These indicates that bears are ready to take action.
However, we need a second confirmation.
My analysis will be proven if the yellow bold line is broken. This will indicate that the price has formed a lower-low structure, which marks the start of a downtrend (at least in intraday timeframe)
Next Question: HOW LOW CAN ETH GO?
If you see at the daily timeframe , Ethereum forming a potential bullish megaphone.
If ETH is to go down, I think it might go to the lower part of the pattern (see white trendline)
But a possible reaction at the support in around 1511 USD is also possible
Should we see a bullish signal in those area, we can start buying/long up to 2000 or maybe 2100 USD.
Hope you like my analysis and don't forget to share your thoughts as well