Hi friends, hope you are well and welcome to the Ethereum.
A powerful breakout:
Previously I shared two major moves with you in 2020. One was the Ethereum coin found a weak Ichimoku bearish cloud resistance on the weekly chart and it was expected that this time the Ethereum will breakout this cloud with a powerful bullish divergence.
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The second was the big Gartley move on the monthly chart and the priceline was entered in the potential reversal zone of this harmonic pattern.
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Finally, the price action of the Ethereum coin started a powerful bullish move and rallied from $131 to $1150.
After rally:
Now the price action is moving above the Ichimoku bullish cloud, and the bullish cloud is moved up at $750.
A big Cup & Handle formation is expected to hit $2200:
On the long-term monthly chart, the price action has formed a very big soft round shape move and found a resistance at $1150. If the price action will be rejected from here then a rally to the downside can complete the Cup & Handle bullish reversal move. This bearish rally can be up to the half of the bottom to the resistance of the Cup, which is $550 approximately. Now if we take the measurement of the hight of the Cup from the resistance to support, and place it at the breakout point then the next target can be $2200 at least.
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The EMAs on weekly char and the combination of indicators and oscillators:
If the formation of handle starts then we can expect that the priceline of Ethereum can test the exponential moving averaged 21 on weekly time period chart, that is at $550 at the time of writing. I am also using some additional indicators to get more confirmations. Here I have placed the moving average convergence divergence (MACD), Stochastic and the Momentum indicators. At the moment the Stochastic has given bear cross (sell signal) from the oversold zone, but we should wait for MACD and momentum indicators to turn bearish as well, then it can be a confirmation for the starting of correction rally that can complete the formation of the handle.
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Conclusion:
If the price action of Ethereum will be rejected by $1150 resistance then it can form a big bullish reversal Cup & Handle that can lead the priceline to $2200 in the coming days.
