ETHUSD Analysis

This content is for educational purposes only.

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I expect the price to go much higher, but currently, it needs to correct. Remember the movement of price is like a spring coil. It needs to build up momentum.

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On the topic of Hidden Divergence. This is a powerful analysis, it doesn't always play out. But for those who have read my commentary, I have always advocated the notion that trading is similar to a jigsaw puzzle.

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Your confidence in predicting trend reversals can only be strengthened if you combine multiple technical analysis studies.

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What clues do we have that the market can reverse from this zone?

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The great master technician Sokyu Honma was a great fan of triple bottoms. He would name them in Japanese San Sen. He was two centuries ahead of his western counterparts. His skill was so legendary that the Emperor made him a samurai. This was a great achievement since he was an orphan.

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In my opinion, the 17th of May (first bottom), 9th of June (second bottom), 17th July (third bottom)

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The first signs of strong hands entering the market is when price moved away from the channel trendline. The second clue was the bullish engulfing candle on that zone.

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If you like to read my work, then I would highly appreciate it if you can comment, like, share and follow. Thank you.

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In my opinion, the market will reverse. It has already shown signs of that. However, currently, the market is ranging. Read my spring analogy. Therefore, at what particular level will this market retrace and find support?

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In my humble opinion, it can find support at two particular key levels. One is the bottom of the horizontal trendline and the second is the lower boundary of the ML pitchfork.

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Nonetheless, the current climate should tell traders not to enter prematurely. Instead, we wait like a predator stalking its prey.

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In regards to where this market can ahead up to, I have drawn a pitchfork. The price will test the middle and upper ML depending on market conditions.

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The blue line is the time factor which pitchfork traders often use.

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I have redrawn a horizontal trendline on the RSI indicator.

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Before price makes an impulsive move upwards it needs to retrace. But we still need confidence that the trend has changed. We can do this by focusing on the concept of swing failure on the RSI reading.

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The lowest reading on the RSI was 14.29. I expect the RSI reading to fail to go beyond this level. This would be a swing failure. When price breaks above the horizontal trendline this should give a trader more confidence.

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Remember this is my opinion. Thus, use your own analysis to come to a conclusion.

oaa37

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oaa37