Much like Bitcoin during the 2018/2019 bottom, this Ethereum consolidation has repeatedly formed bullish reversal chart patterns on lower timeframes. Together, these patterns have also drawn a large ascending triangle which has had a series of higher lows and a horizontal resistance zone. Volume during this consolidation has also declined throughout, with the exception of event driven volume around the FTX debacle.
Entry: breakout trade above the horizontal resistance (>$2k), on volume
Exit: measured move and fib extensions based on depth of pattern ($2.7k-3.0k)
Stoploss: any lower lows below the current local low (<$1630)
Entry & Exit levels can also be simplified using the yearly pivots
Entry = > nearest pivot
Exit = R1 Pivot
Additionally, high timeframe Ichimoku Cloud shows a pending Kumo breakout possible over the next month. The Kijun also acts as a stop loss level for any active long.
Entry: breakout trade above the horizontal resistance (>$2k), on volume
Exit: measured move and fib extensions based on depth of pattern ($2.7k-3.0k)
Stoploss: any lower lows below the current local low (<$1630)
Entry & Exit levels can also be simplified using the yearly pivots
Entry = > nearest pivot
Exit = R1 Pivot
Additionally, high timeframe Ichimoku Cloud shows a pending Kumo breakout possible over the next month. The Kijun also acts as a stop loss level for any active long.
1. regulatory attitudes toward ETH and staking in the US
2. institutional tradfi product approvals post-ETH regulatory clarity
3. exchange outflows and staked ETH inflows