Hallo everyone,
in the last weeks Ethereum was underperforming Bitcoin, but actually the chart looks quiet interesting again. The price broke out of a huge bull flag, but with the large correction in Bitcoin it fell under the breakout level again. Now it's approaching the breakout for the second attempt. The most important levels to watch is the 2021 yearly close at 3677. Should we see a sustained move above, which aligns with the bull flag retest, ETH is set to reach new all time high prices within the new two month.
Looking at the seasonality of cryptocurrencies the first quarter of the year is a good moment to be bullish.
in the last weeks Ethereum was underperforming Bitcoin, but actually the chart looks quiet interesting again. The price broke out of a huge bull flag, but with the large correction in Bitcoin it fell under the breakout level again. Now it's approaching the breakout for the second attempt. The most important levels to watch is the 2021 yearly close at 3677. Should we see a sustained move above, which aligns with the bull flag retest, ETH is set to reach new all time high prices within the new two month.
Looking at the seasonality of cryptocurrencies the first quarter of the year is a good moment to be bullish.
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As you may noticed, ETH dropped below 3k for a quick retest. Following the elliot wave count, the visible wave 4 low was set lower and we now have a completed ABC pattern. It is important to understand, that Elliot Waves are always probabilities and can be interpreted in different ways. Also you can see that the price did not close above the mentioned yearly level, so there was no long confirmation. I personally trade these kind of situations with a low lot size to scale in the trend. If the prices resets lower I decide to add to my position or close it.
In this case I decided to add, because of the following reasons:
- Looking at the Liquidation Heatmap nearly all big liquidation zones were hunted and we have more than one billion short in the region of 3400.
- The daily candle close has a huge wick
- The price closed over the important 3k level
- Stock market is also showing signs of a bottom
Note
The short term elliot wave count is invalidated, but the overall bullish structure remains intact. The support zone at around 2000 dollars provided crucial support on the high liquidation event.Note
All the liquidation is now above the current price, so I think we should see a strong recovery within the next weeks.
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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.