The Head & Shoulders model for Ethereum [ETH] Do you mark the end of its bullish outperformance?

Daily chart of Ethereum – Source:

From mid-December, Ethereum outperformed the other major cryptocurrencies.

However, the second largest cryptocurrency failed to keep up with recent bullish movements.

A surge occurred yesterday in the market, which was led by Litecoin initially appreciating more than 10% and other important cryptocurrencies that followed the example.

Ether did not manage to react to these conditions in a bullish way and did not even manage to exceed the Saturday daily high.
4-hour Ether Chart – Source:

Some reasons may underlie this underperformance.

Those with a bullish prospect would argue that the price is consolidating before continuing its upward movements.

However, even bearish models have formed.

A head and shoulders formed on the four-hour table would indicate that the price is getting ready to reverse from here.

If the price can continue to increase from here, the key level to monitor is $ 170.

This was a liquidity area during the bearish fall of mid-November. Consolidated price between $ 170 and $ 180 before continuing its bearish decline.

The seller's liquidity and resistance are expected to come into play if the price rises at this point.

On the downside, the key level to monitor is $ 140.

This was an important point of resistance during the recent upward movements of Ethereum, and was also a previous area of ​​consolidation.

Key Takeaways:

  • After outperforming since mid-December, the ether has begun to underperform.
  • There may be a number of potential reasons that drive underperformance. Consolidation before continuing the upward movements would be the bullish point of view. The head and shoulders would be the bearish point of view.
  • The key levels to monitor are $ 170 on the upside and $ 140 on the downside.

Latest news about Ethereum:

NOTE: Investing or negotiating digital assets, such as those present here, is extremely speculative and involves considerable risks. This analysis should not be considered an investment advice, use it for information purposes only. The historical performance of the assets discussed is not indicative of future results. Statements, analyzes and information on blokt and associated or associated sites do not necessarily correspond to the opinion of blokt. This analysis should not be interpreted as advice for purchase, sale or storage and should not be taken as approval or recommendation of a particular asset.




Shutterstock foreground image.

[blokt] is a leading independent blockchain news source that maintains the highest professional and ethical journalistic standards. Journalists are required to meet our editorial policies and guidelines.

Source link