Ethereum has an interesting story to tell
At first it might look easy to predict, DOWN right?
No!
It doesn’t look bearish. Actually a deep up correction is happening in both bitcoin & ethereum
But it doesn’t mean you can buy and hold for a big move. it can be one of the most quick-to-end corrections but you still can take advantage
Let’s start with the very first thing we see, A RANGE
A range is a market maker activity which is either distribution (selling blocks) or accumulation (Buying blocks)
The result for distribution is a downward fall and the result of accumulation is an upward raise
How do we know which one a range is? The weakness/strength confirmation bar.
If price is broken decisively to one side and doesn’t go back to the range, it’s a great spot to take a trade
As you can see, price was in a range for sometime but the last wide green bar confirmed that the range is bullish because it exploded up!
So we can expect a bullish action
Did you miss the green bar? Well, maybe but I’ve got some good news. You still have the opportunity to get the next leg up!
Look at it:
Can you see the pink box? That is another accumulation level and it’s called absorption
All you have to know is that the end result is Up (showed with dashed arrow)
Stop loss should be tight
There’s a possible scenario that can happen and you must REVERSE the trade right away
Price can fall in a very easy sharp manner and after it broke the support line of the range, you reverse the trade right away with a relatively wide Stop Loss
Have a flexible mind and Don’t be stubborn in wrong decisions
So let’s say it will go up. Now the question is where it possibly can go to??
I was able to find a confluence. Confluence of a reciprocal harmonic pattern and resistance line
The very first level it can go to is that and after that we seriously should think about selling
What if it’s broken??
The last bearish block (resistance) is the light blue box I drew for you
It’s more of an area of resistance
If price didn’t bounce from that, then bulls are extremely powerful and you should probably think about buying
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Until next time ;)