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Finally, Ethereum stops to repeat the historical support correctly



Ethereum (ETH) has finally completed a gap. Most retail investors often do not care much about such minute details, but investors who risk millions of dollars have to be careful. If we look closely at the weekly chart ETH / USD, we can see that the last green candle that tried to test the support left a small space after recovery. The average investor took this as a sign of recovery and therefore was quick to include buying positions or worse, leveraged purchase positions. However, whales or big investors have set their sights on this gap. So when the price touched the 5-week EMA and refused, they took it as a strong sign of weakness and became more convinced that the gap will be filled in the near future.

The weekly chart above for ETH / USD shows more clearly how the previous support test left a gap that has now been filled. The price successfully defended the support and resisted a fall below it. However, the gap is now complete and the price may increase more rapidly in the coming weeks. For most retail investors, this could be a trivial concern, but it is important to be absolutely clear whether you are negotiating or investing. If you are trading, it is very important to be wary of such developments. However, if you are investing, you can afford to lose them because the long-term perspective is clear. The price has now completed a bullish gartley model and it's all set for a climb sooner rather than later. That said, the price could fall further in the short term, which is what we saw today.

The weekly chart for ETH / BTC shows the price for reaching oversold conditions now. The price is unlikely to fall lower. Most investors and analysts have defined the previous decline as the last wave of capitulation. It may have been the last wave of capitulation, but it seems that the whales have deliberately left a hole at the bottom to be filled later. One reason could be to try to dismiss the excessively enthusiastic long in exchanges like Bitmex or Bitfinex after the bulls considered the alleged last wave of capitulation as the ultimate goal of correction. This continues to show how dangerous leverage trading can be, especially in times of low volume and volatility. The price can swap sideways for a while and before you know it, you might see a swing here or there without it being a logical explanation to support it.

The cryptocurrency markets are very prone to manipulation at this stage, considering that there is no formal regulation and as far as we know the trades that allow traders to buy or sell on the sidelines could work with whales to make their jobs easier. In any case, it is important not to outsmart the short-term market. The price eventually ends up doing what it's supposed to do in the long run, but some events often end up influencing the feelings of amateur traders. So, the price will eventually end up recovering from its lows, but most of the time without investors giving in to emotions.


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