Ethereum has all good supports for a big pumpEthereum is at the support that is not broken down since more than a year:
As earlier we have seen that on daily chart the ethereum turned very strong bullish and started powerful bullish rally from December 2019 to 14th February 2020. And after gaining more than 150% value we have witnessed a waterfall crash after 14 Feb 2020 upto sofar. And Ethereum has lost more than 58 % of its value. During this crash the Ethereum has dropped at the support of $122. That is really strong suppor as we can see this support is not broken down since more than a year since March 2019. The priceline is likely to embrace this support as we examine that the price action has hit the spike even beyond this support but in all of a sudden the price action again retraced back and crossed up the support. At this time the price of Ethereum is moving above this level.
Long term support working as market structure for Ethereum:
Now if we switch to the long term weekly chart then it can be easily examined that we have a very strong support of $90 that is not broken down since June 2017. This is working as a basic market structure for the Ethereum’s price action. Once this support will be broken down then the market structure of Ethereum will be destructed and we can have very strong bearish move by the Ethereum’s price action. We have even that the price of a Ethereum has even hit spike beyond $90. For example in December 2018 the priceline has hit up to $80.60 but retraced back. And we don’t have even a single candlestick that is opened and closed below the support level of $90.
Formation of descending triangle:
On the weekly chart we can also notice that the price line is caught in descending triangle. The support of this triangle is the same as we have the long term support of $90. The priceline entered in this triangle in December 2018 and after hitting the support turned very strong bullish and produced more than 355% profit. And after June 2019 the priceline dropped down again up to December 2019. But this time the priceline did not hit at the support of this triangle. Because
Now the question can come it mind that why the priceline hits at the support in December 2018 but why did not hit at the support in the December 2019. The answer is that if we see in December 2018 then lower bands of the Bollinger bands was even below the support level therefore the price line had the capacity to move upto the support of the triangle. But in December 2019 we can see that the lower bands of the bollinger bands was above the support of the triangle therefore it played the role as a strong hurdle for the price action and stopped the priceline to reach up to the support. And this time in March 2020 we can again see that bollinger bands was moving with the support of the triangle therefore the price line had the capacity to reach up to the support and on the candlestick of 9th March 2020 we have seen that the priceline has reached the support of the at $90 and now turning bullish again.
Here I have also placed the volume profile on the complete price action moving within this triangle and as result we can see that the trader’s interest is very low below $106. Its mean that the traders are less interested in trading close to the support of the triangle therefore we can expect an upwards move very soon. And the point of control of the volume profile is at $134 it can also help the price line to move up because the priceline always moves around the point of control.
Bullish Gartley move:
Now I would like to divert your attention towards the harmonic move of the Ethereum that I have been showing in my previous posts and that the Ethereum has formed a very big bullish Gartly pattern on monthly chart. And this recent strong bearish move has helped the price action to complete the final leg of this pattern. The current candlestick on monthly chart has moved even below the potential revesal zone of this bullish Gartley. But until we will not have any candlestick that would be completely opened and closed below this PRZ level this Gartley pattern will be valid. And according to this pattern the buying in sell ranges should be as below:
Buy between: $ 189.05 to $ 141.35
Sell between: $ 225.63 to $ 316.03
So if the Ethereum will hit the maximum target then it can be more than 146% move. But if the priceline will cross up the maximum targets then it can turn more bullish.
Conclusion:
After hitting the strongest support of $90 there are strong chances that Ethereum will turn more bullish and this support will be saved.
The short-term support of $122 is also saved now the price line can move up to make another attempt to break out the the triangle’s resistance very on long term weekly chart.
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.
