ETHUSD Potential Consolidation
Updated
ETHUSDA potential consolidation pattern may be forming. For those unfamiliar with consolidation, it refers to the movement of the price within a well-defined pattern of trading levels. With the recent uncertainty across crypto markets, a period of indecision may be ensuing on Ethereum's current price. Traders recently went through a price consolidation(A) for a short period before a upward price trend ensued after finding strong support at the 0.786 retracement level and strong resistance at the 0.618 retracement level.
The current potential consolidation of pricing on the chart may be very temporary before a downward price break to find support at the 0.618 retracement level before a price recovery in the long run. The current consolidation(B) found strong resistance at the 0.382 retracement level and has currently found support(albeit temporary) at the 0.5 retracement level. This is my current sentiment at the moment with the level of indecision developing based on market pricing and Ether's tendency to follow BTC through dips and spikes.
Overall trend remains downward. I do not consider ETH to be making a bullish break, this seems temporary. We will be watching for changes and adjustments to predictions will be made.
My recommendation would be to remain neutral.
Please note that my views are not to be considered trading advice or knowledge. My thoughts on this matter are exactly that, thoughts. I will not be held liable for losses on your part after your decision to follow what I have mentioned here. That being said, Thank you for reading my perspective. Leave your thoughts below
Note
The potential consolidation stays in play, finding strong resistance at the 0.382 retracement level. The price also seems to have broken above the moving average, however I find this to be a false bullish trend similar to the condition of the BTCUSD price. If the price breaks past the 0.382 retracement level, we will have to re-evaluate this prediction but for the most part, I expect the consolidation to stay in play due to market uncertainty.
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