Happy 2022 everyone :)
Not the most encouraging post to kick off the new year but I think it's an important one based on the amount of growth we've had in 2021.
ETH closed around $740 at the end of 2020 and $3680 yesterday which is nearly a 400% annual increase. Yes we could continue up from here but from a realistic standpoint a correction seems more probable. That said, the market is still very unpredictable and there are a few positive signs at hand.
A continuation of this down-step pattern could break current long-term trend (+ wedge) and send us to 3300; this would trigger the downtrend cycle that's been slowly developing and possibly the weekly Chaikin as well. Dashed lines are major support zones for a worst-case scenario. Price consolidation has been hovering towards trend lows lately which is always a cause for concern.
On the other hand, support has held in nicely at 3600 (+ wedge). The recent dip and recovery created a double-bottom setup (neckline 3800) and also solidified the second point for the long-term extreme low (solid black line); this is better illustrated on the H4 chart which will be posted tomorrow. Close for 2021 also hit wedge support (3680) which rounded out daily MACD and Chaikin a bit more. A solid push could send us back above 4k.
Below is a private link for the general price overview of $ETH. Most objects hidden for clarification.
Not the most encouraging post to kick off the new year but I think it's an important one based on the amount of growth we've had in 2021.
ETH closed around $740 at the end of 2020 and $3680 yesterday which is nearly a 400% annual increase. Yes we could continue up from here but from a realistic standpoint a correction seems more probable. That said, the market is still very unpredictable and there are a few positive signs at hand.A continuation of this down-step pattern could break current long-term trend (+ wedge) and send us to 3300; this would trigger the downtrend cycle that's been slowly developing and possibly the weekly Chaikin as well. Dashed lines are major support zones for a worst-case scenario. Price consolidation has been hovering towards trend lows lately which is always a cause for concern.
On the other hand, support has held in nicely at 3600 (+ wedge). The recent dip and recovery created a double-bottom setup (neckline 3800) and also solidified the second point for the long-term extreme low (solid black line); this is better illustrated on the H4 chart which will be posted tomorrow. Close for 2021 also hit wedge support (3680) which rounded out daily MACD and Chaikin a bit more. A solid push could send us back above 4k.
Below is a private link for the general price overview of $ETH. Most objects hidden for clarification.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.