Hey lions and traders, today, I’m going to take us back to a chart analysis I did 2 months ago. Even I almost forgot I did that analysis, so there’s a good chance you won’t remember it, especially if you don’t follow me. Head over Here to recap the analysis before we get into today’s good stuff.
Okay so looking back to the chart of the last analysis, we saw a dynamic resistance rejecting Ethereum price and stopping a bullish move from moving above it. Price had been rejected twice by this dynamic resistance and was heading for another test.
It was unclear which direction a breakout was going to happen, whether upward in which case it would be the start of a potential bullish trend or downward, in which case it simply be a retest and continuation of the bearish trend. This was a critical decision-making point, and I recommended people not enter positions yet, but wait for either a break and retest upward, confirming a bullish trend, or a test and rejection suggesting a bearish trend continuation.
Fast forward two months after the said analysis. Let’s see how the analysis played out. As we can see in the chart above, price tested the dynamic resistance, got rejected, and just like I thought, retested for a second time and got rejected again. This basically suggests that bulls are trying to take over the market, but haven’t built enough buying pressure or momentum to drive price above the dynamic resistance. So as we sit, bears still control the market (which is pretty obvious).
Let’s switch to 1-day chart, remove all drawings and add the Bollinger Band for some technical analysis. Price seems to be in an accumulation with low volatility heading toward the dynamic resistance, and the Bollinger Bands seem to have constricted or narrowed a lot, meaning there’s about to be an explosive move due to volatility, another test and reject perhaps?
Price also seems to be moving in a price channel, and has almost tested the top of the channel. If it fails to break above $1500 and hold it, (and it most likely will fail to break above) it should head to retest the bottom of the middle line of the channel at $800 or $600.
Disclaimer: This is probably very very misleading analysis I would highly advise against making any financial decisions based on it, unless you want to loss money for sport. I won’t be responsible for any money lost or profit made based on trades taken on this analysis.
This is simply me practicing my little technical analysis and price action and being bold (or dumb) enough to show it to the rest of the world. Feel free to add any contributions in the comments if you have any.
All screenshots in this post were taken from TradingView
Who Authored This Post?
I am 
