For recent weeks now, Ethereum has been ranging in the 4-hour timeframe at $1911.10. Despite the prevailing fall in crypto, Ethereum has offered great trading opportunities to all traders. From the image below, it is seen that Ethereum has traded above the support zone, thereby taking out the swing highs slightly above it.
It appears the market (ETHUSD) is moving towards the Order Block resting on point $1854.2 in the 4-hour timeframe. This is where it gets technical. Now, the traders have to await a confirmation in which price triggers the Order Block (OB) and reverses for a swing bullish run (i.e. to signal a solid bullish momentum).
As can be seen from the figure above, Ethereum has traded above the support zone, wiping out the swing highs just a little bit above it.
The figure above depicts a 4-hour chart of ETHUSD. The daily FVG is a fair value gap or imbalance that has been filled, alerting all swing traders to the prospect of a bullish run.
Let’s take a little dive to explain some concepts highlighted here:
- Order Block: An order block is a location where there has been a significant concentration of limit orders awaiting execution. On a chart, order blocks are located by looking for locations where the price witnessed large volatility or abrupt changes in direction in the past.
- Support Zone: This is an area or region in charts where prices begin to buy. Hence, it is a zone that initiates a buy strength for a bullish market.
- Fair Value Gap: This is sometimes called to as imbalance. A fair value gap exists when the price of the currency is higher than its fair value of it, but the price of the currency could decline quickly.
- Internal Range Liquidity: The liquidity inside the defined range (External Range Liquidity), This could be in the form of any institutional reference that we can use as an entry such as order blocks, fair value gaps, volume imbalance, and more.
ETHUSD Market Analysis Summary
It appears the market (ETHUSD) is moving towards the Order Block resting on point $1854.2 in the 4-hour timeframe. This is where it gets really technical.
Now, the traders have to await a confirmation in which price triggers the Order Block (OB) and reverses for a swing bullish run (i.e. to signal a solid bullish momentum).
Swing traders should therefore wait until the milking season because, if the setup is complete, ETHUSD will trade right towards $1996.6.
Summarily, ETHUSD is long term bullish.
Featured image: Shutterstock
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Gibson Jonathan is a highly accomplished professional with expertise in the writing and business consulting industries. With over 2 years of experience, he has consistently demonstrated exceptional skills in web content creation, business proposal development, and market analysis writing.