In this article we’re going to describe an example of technical analysis made this evening on ETH (Etherium).
Image 1: ETH TradingView chart (BITSTAMP) – Timeframe 4h – 11: 08hr on 20/03/2018
What we can see is:
- The main downtrend (and relative retracement);
- The support created by the minimum of 2 February 2018;
- The highest resistance created by the high of March 10, 2018;
- In purple, a bullish flag.
The possible interpretation is that the bullish flag, which is a continuation pattern, indicates that the price will continue to rise. The resistance just surpassed this thesis, in addition to the fact that most of the major currencies (BTC, XRP, XLM) in this period have begun to rise.
Therefore, in the short term , there may be a rise (with the possible goal given by the dotted line in purple). We must however pay attention to a possible rebound dictated by the various resistances and downtrends.
In the medium term, it is also hoped here to have a rise. My goal would be to return to a rate of 740 euros and make a take profit.
The long period , at least for now, remains bearish. Nothing, however, forbids that there may be a reversal of the situation (ie instead of aiming at the umpteenth local maximum and then down again, we could continue with the ascent).