Hi my friends,
Ethereum is forming some interesting movements not only on the smaller timeframes but also on the bigger timeframes such as the where it is moving in two ascending-channel-formations, the one is more local and steeper and is marked in black where the immediate trend is lying and the other is more global and flatter where the huge wave-cycle is lying. It has to be noted that Ethereum is moving a massive consolidation here already for a long time where it will show a strong breakout sooner or later. As Ethereum is now approaching the middle-line of the steeper ascending-channel-formation since some weeks this will be an important reference point to further continuations besides that there is the 10-EMA which is holding the weekly trend to the upside here. In comparison to bitcoin this structure is very differential as Ethereum recovered better from the heavy corona breakdowns seen this year and managed to move higher above these established pre-corona highs in the structure.
On the more middle-term, Ethereum is building this triangle-formation you can watch marked in the structure in my chart with the orange triangle which will show a breakout sooner or later either to the up or downside, now as the 10-EMA in green and the middle line of the channel is still holding we can also expect this to go on till there is a decisive move, taking all these factors into consideration the case moving above the upper boundary and determining a new higher high is at the moment more possible than the case that Ethereum breaks below and tests the lower boundary as there is still some solid support lying which can increase the pace here scenario A should be more expected than scenario B. This scenario A will show up when Ethereum manages to move above the upper boundary with a decisive move which will increase bullishness till it tests the upper boundary of the steeper ascending-channel-formation which will lead to a C-wave extension of the bigger wave-count as it is marked in my chart, it will be interesting how Ethereum proceeds further here.
In this manner, thank you everybody for watching, have a good day and weekend, feel free to support and all the best!
Information provided is only educational and should not be used to take action in the markets.
Published at Sat, 17 Oct 2020 08:00:36 +0000