Patience is paramount to successful trading in any market. We have seen throughout the history of Ethereum (ETH) that certain patterns and fractals have been repeating over and over again. It is thus important to take them into account and be patient and let them play out because most of the time things are not as complicated as we like to think. For instance, the 4H chart for ETH/USD shows us how closely the price is following the same fractal as the one from the last week of September when the price was setting out to rally after a crippling crash.
Just as the price retested the 38.2% fib extension level and declined slightly lower than that, we have seen the exact same thing repeat and the price is now beginning to rally from there. The next big move from here could see Ethereum (ETH) rally as high as 20% from current levels with minor pullbacks along the way. This would be perfect for ETH/USD to test the 200 moving average on the 4H time frame as well as the previously broken market structure before the next decline. If we have a rejection at the previously broken market structure around $177, we can expect a decline back within the descending channel. However, if the price ends up rallying much higher from there towards $200 then something different might be at play here and we would have to be very careful being bearish on the market.
So far, this seems like a good time to hold on to your Bitcoin or Ethereum and wait for the market to rally much higher. Based on how the market reacts there, we can consider being long or short but for now there is no point in being bearish on the market. The 4H chart for ETH/BTC gives us another reason not to be short on the market just yet and that is the near-term outlook of Ethereum against Bitcoin.
We can see on the chart that Ethereum (ETH) has found a strong support against Bitcoin above the 38.2% fib extension level which means that it could rally higher from here. Cryptocurrencies rising against Bitcoin (BTC) is always a good sign for the market because it means that investors are not afraid of taking risks and being optimistic near term. Before the next big downtrend comes into effect, we will see retail traders become more confident and more hopeful in the beginning of a new bull run.
Jefe Caan , 2019-12-05 00:00:00 ,