Ethereum in a rising wedge, will it plays out?


Ethereum continues to move sideways between the major support at $500 and the next resistance at $818. The ema's walk nicely apart, and on a high timeframe this means that the trend is pretty strong. In my opinion we can just stay bullish on Ethereum but on the lower timeframes there could still be a pullback.
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The signals on the daily are generally bearish. For example, there is a rising wedge that we should definitely keep an eye on. Especially since the red trend line also indicates a bearish divergence which is best seen on the MACD. The divergence is 25 candles which I think is the max for a divergence to use.

After the 1st retrace on the Fibonacci 0.618 there was also a higher high where the local structure was broken. At the moment the price of this last move up is also on the Fibonacci 0.618 which can cause a further rise. But in order to be able to determine this correctly, we need to zoom in further.
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After the red downtrend line broke more than a week ago, Ethereum experienced an increase of almost 20%. And as you can see we are now trading on the order block that was formed after the outbreak which also has confluence with the uptrend lines the Fibonacci 0.618. Many signals that coincide is a greater chance that it will play, of course no guarantee.

The rsi and lbr are both cooling down and moving sideways above the bearish part. The ema is falling on both which indicates a possible crossover or of course a further rejection down.
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Conclusion:
As I indicated earlier in the analysis I am longterm bullish on Ethereum but on the lower timeframes I do see some bearish signals that we have to take into account. At the moment I see Ethereum rising within the rising wedge but what happens at the top of the rising wedge is important. We can flip it and go further up but the rising wedge can play and then the $500 is major support.

If the red trend line flips to support and the $713 can hold, I expect that we will quickly move towards the $818.

Also, If you are interested in trading, I would suggest you try out Coingrats free Discord server where we discuss the market and share interesting content. We have also have a free premium section where we share trading signals for Bybit. More info in our Discord server

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MrCoingrats
MrCoingrats

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Technical analysis by Mr. Coingrats
Technical analysis by Mr. Coingrats

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