ETHUSD Price Analysis
ETHUSDThe overall market sentiment over the past few weeks has been volatile and despite major swings throughout the cryto market, Ether seems to have began displaying an authentic consolidation pattern:
As noted before in previous consolidation articles, a couple of the signals for potential consolidation would be a decrease in price volatility, which Ether has shown in strength & decreasing volume over the course of the trend before a breakout. These two signals are rather evident in our chart.
Ether's price range has remained well within the $240 & $320 price range. As noted in our charts, consolidation can take numerous patterns but in this case, a convergent pattern developed where we witnessed higher lows and lower highs.
The last significant consolidation that Ether experienced was within the $40 range that resulted in a bull run that more than doubled the ETH market value.
Our last peak in volume (ab) was the highest since the last major consolidation period & based on the macro-trend, our consolidation settles nicely within the 0.618 & 0.786 retracement levels. The high volume during consolidation signals that the market has found its bottom and bull v. bear ratio confidence before a breakout is building. We'll be watching this as it unfolds. In the event that consolidation breaks down due to increased uncertainty we could witness a break down toward the last support price level of $200 before an upward trend develops.
For the long run however(in this case I'm speaking months), my recommendation would be to remain long as the last major consolidation period saw a more than double increase in ETH market value.
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