ETH/USDT - are we in for a weeks long consolidation ?
Hi all,
ETH remains intact in the uptrend channel, trading closer and closer to its lower boundary on the daily timeframe. The action reminds me a lot of what we saw back in July-October 2020 - aggressive rise leading to a momentum peak followed by a 30% correction, then a narrowing price action towards the diagonal support as part of the uptrend corridor.
Since the fundamentals are clearly strong, but the price cannot just continue moving upward, we need a little breaker, a cooldown period, so new buyers are attracted and old ones are either pushed out of the market via leveraged position liquidations or forced to rebalance their portfolios. Additionally, a lower price means a lower entry point for institutional players. A market crash though won't serve good to anyone, so I think we will stay in the zone below $1,900 at least until the end of April.
The yellow arrow marks the projected path if history repeats itself.
Best Regards
ETH remains intact in the uptrend channel, trading closer and closer to its lower boundary on the daily timeframe. The action reminds me a lot of what we saw back in July-October 2020 - aggressive rise leading to a momentum peak followed by a 30% correction, then a narrowing price action towards the diagonal support as part of the uptrend corridor.
Since the fundamentals are clearly strong, but the price cannot just continue moving upward, we need a little breaker, a cooldown period, so new buyers are attracted and old ones are either pushed out of the market via leveraged position liquidations or forced to rebalance their portfolios. Additionally, a lower price means a lower entry point for institutional players. A market crash though won't serve good to anyone, so I think we will stay in the zone below $1,900 at least until the end of April.
The yellow arrow marks the projected path if history repeats itself.
Best Regards