Descending triangle:
In my previous article we have already discussed that the price line of Ethereum is moivng in descending triangle. The support of this triangle is at $90. The priceline entered in this triangle in December 2018 and after hitting the support turned strong bullish and rallied more than 355%. And after June 2019 the Ethereum dropped down again. But this time the priceline did not hit at the support of this triangle. Because the the lower bands of the bollinger bands was above the support of the triangle therefore it played the role as a strong hurdle for the price action and stopped the priceline to reach the support of triangle. And this time in March 2020 we can again see that bollinger bands was moving with the support of the triangle therefore the price line had the capacity to reach up to the support and on the candlestick of 9th March 2020 we have seen that the priceline has reached the support at $90 and now is has turned strong bullish. Sofar the price line has rallied more than 152%
Here I have also placed the volume profile on the complete price action moving within this triangle and as result we can see that the trader’s interest is very low below $107 Its mean that the traders are less interested in trading close to the support of the triangle therefore we can when the priceline moved below this level it turned bullish and moving up.
Ethereum is bounced from the support that is not broken down since more than a year:
If we switch to the daily chart that we can observe that after that after strong bearish move of the month of March finally the price action has hit the support of $122. This is very strong support that is not broken down since more than a year therefore the priceline is not able to break down this support. From this support level the Ethereum took a powerful divergence and broke out the first resistance level at $149. And after breaking out this resistance level the priceline has re-tested this resistance as a support and moved up. At this time we can see that the price action is attempting to breakout the next resistance level of $224. If this resistance will be broken out then the priceline may re-test this resistance level as a support then it will move up to make an attempt to break out the next resistance level of $310.
Big bullish Gartley has started its job:
Here I would like to recall the big bullish Gartley pattern that we have discussed in previous article, that the Ethereum has form very big bullish Gartley pattern on the monthly chart same as like the Bitcoin has formed. The strong bearish move of the month of March has helped the price action of Ethereum to complete the final leg of the bullish Gartley pattern. Even the priceline has hit the spike beyond the potential reversal zone but on the same candlestick the priceline retraced back and re-entered in the potential reversal zone again. The buying zone of this pattern starts from $188 and ends up to $141 and as per Fibonacci sequence of harmonic Gartley pattern the price line should move up in the Fibonacci projection of A to D leg that starts from $245 and ends up to $315. The maximum extent of this sell zone or Fibonacci projection area $315 is almost at the same level where we have third resistance level. And that is on $310. Therefore this time there are strong chances that the priceline will hit $315 level to breakout this resistance.
This bullish indication is going to appear second time in the history of Ethereum:
Now I would like to discuss with you the most strongest indication that can lead the priceline of Ethereum to hit the $10,000. And that is the ichimoku cloud on the weekly chart if we see back in 2016 when the price action crossed up the ichimoku cloud then it Ethereum produced more than 12933% bullish rally. And after hitting the highest price the Ethereum turned bearish and on June 2018 the priceline crossed down the cloud. Since then Ethereum is not able to cross up this cloud again. And at this time we can see that the price action of a Ethereum is making third attempt to cross up this ichimoku cloud. Once the priceline will be able to cross up this cloud then this ichimokum bearish cloud will be turned bullish and it will become most strongest support for the price action of Ethereum. That can lead the priceline to hit higher than the previous highest price. Therefore there can be a possibility that it will hit $10,000 within next 2 years. The lagging span has already crossed up the candle sticks that is another bullish indication this will be helpful for price action to cross the candles.
Conclusion:
There are strong chances that the Ethereum will make an attempt to breakout $310 resistance. Incase of breaking out $310 resistance level the Ethereum can easily cross up the ichimoku cloud after that the price line can turn bullish and incline on long term.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.