Ethereum is having an interesting day as it bounces between moving averages on the 1H.
Within the larger M pattern it appears to be forming, Ethereum is now forming a small W across the 50 EMA on the 1H. Adding to the suspense, Ethereum has the 200EMA hugging the low side of the 50EMA cloud and the 800EMA hugging the high side of the 50EMA cloud.
It even feels like a safe bet here to look for Ethereum to now race back and test the 800EMA around 2800 before falling again to pin the 200EMA above 2650. That kind of action could lock Ethereum into a bit of a consolidation channel between 2650-2800 with strong support and resistance on either side.
It is critical here to pull back and look to the larger trends in the market. Here in the daily:
We are still trading tightly into a inclining wedge and facing several bearish signals and indicators, most obviously the M forming.
Trade carefully and watch volume closely as we head out of the wedge. Decreasing volume would be a stronger indicator than not that price is heading down while increasing volume would be a stronger indicator than not that price will be heading up. Of course a significant rally here would realign the moving averages into a true bull order. We still have the 200EMA running under the 50EMA but both are under the 800 on the hourly, not the most comfortable situation.
