ETH to make an ATH before having another massive rejection
ETH found really good support at an area we previously mentioned more than a week ago. the 1400 - 1430 dollar area. It even saw a beautiful second retest of this level on the 1hr candles and is now trading almost 15% higher from here.
On the 4hr it is trading back inside the green ichimoku cloud and this can be a really good sign for ETH. It does however seem to be trading within an ascending broadening wedge which in theory is bearish but we can still see ETH come back up to the top of this pattern, which from its current price is 30% up so we will still be looking for long entries.
We have a feeling that ETH can see this massive upwards move back to another ATH and then get rejected and break down this channel. The reason for this is not only the ascending broadening wedge but also we can see RSI bearish divergence building and this is unsustainable in the long term it has to correct at some point.
On the 4hr it is trading back inside the green ichimoku cloud and this can be a really good sign for ETH. It does however seem to be trading within an ascending broadening wedge which in theory is bearish but we can still see ETH come back up to the top of this pattern, which from its current price is 30% up so we will still be looking for long entries.
We have a feeling that ETH can see this massive upwards move back to another ATH and then get rejected and break down this channel. The reason for this is not only the ascending broadening wedge but also we can see RSI bearish divergence building and this is unsustainable in the long term it has to correct at some point.