Ethereum Correction Before BLAST OFF?? My Ethereum Price Prediction Playing OUT! #CryptoEspresso
I am going to be showing you a very important pattern that could be forming relatively soon on the ethereum price action chart, because heres the deal guys ethereum and bitcoin have slowed their rallies just a little bit and they might be about to break out towards all Time high, but there is likelihood that they are going to have a small correction first and in the stream. I am going to show you exactly what that looks like, so that you can have a better idea of where ethereum is and where ethereum is going. So without much further ado, guys lets go ahead and dive right on into it for context guys, keep in mind that over the last nine days, ethereum has rallied 32 percent its up 900. So weve had a large rally on this market, but we first need to understand that there are some trend lines and some trading channels and some resistance levels that might be slowing down our ascent number one. There is a downtrending level of resistance right here that we can see showing up on the ethereum chart number two theres, also an uptrending level of resistance right here that we can see on the ethereum chart as well. Depending on how you draw this will depend on where this shows up. But the point is these: two trend lines have resistance for us right above us. Furthermore, you can see from our local high right over here at 1600 hours on the 15th of september, that there is a flat horizontal level of resistance sitting at 36.
75. So we have three major levels of resistance converging right now, right above ethereum. So if we go ahead and draw some resistance as a rectangle, then you can see that ethereum is going to have a hard time breaking through and punching through this movement, but theres actually more down here on the four hourly chart. Taking note of this, there is an uptrending level of resistance right here on ethereum and an uptrending level of support right here on ethereum. What does that mean? Well, it basically means that over the last 10 days or so, ethereum has been forming a massive ascending wedge and, as you know, ascending wedges typically break to the downside. Furthermore, there are other reasons to believe that we might be about to go through a short term correction. Looking down to the one hourly chart, you guys will see that there is currently bearish rsi divergence showing up on this chart. We have up trending price action, downtrending resistance on the rsi. There are many reasons to believe that we are going to see a small correction over the next several days. So if we do heres what might occur on the four hourly take note of this, there is a very important horizontal level sitting at 3, 175 right here. That is constituted by one two three bottoms back in early september and then one and two tops right here in late september. If ethereum does reject from its local high up here and from its uh zone of resistance between 3675 and 3850, then we could pull all the way back down as far as this level at 31.
75, looking at our fibonacci, that would actually line up relatively decently, with Some of our levels, such as the golden pocket, which sits just below that or ethereum, could bounce off of one of these higher levels in the process of a correction. But nevertheless, in the worst case scenario, ethereum could come all the way back down to 3175 and bounce im, not saying thats going to happen, but that is very much in the cards heres, the good news. If that does happen, then ethereum would form what is known as an inverse head and shoulders pattern with a price target very, very high in the upside. Take a look at this. We draw our price target here and then we extrapolate that would give us a 4 700 price target on each. So then the question becomes: are we going to have the short term correction or not? Personally, i think it would be unlikely that ethereum comes all the way down to 3 175, but i think we are very much capable of pulling down to one of these other levels, such as the 23.6 level, which actually lines up perfectly with these local highs. Here on august, on october, the 2nd and october, the 4th – this could be a level that ethereum pulls down to or we could pull right down here to 38.2. The point is, there are many bearish things showing up on the ethereum chart and were likely going to see a small correction over the next several days, im very bullish on ethereum for the month of october.
But i am concerned about the next several days, because i think there is going to be a bearish breakout of that ascending wedge, i think, were going to reject from the resistance and were going to have a movement to the downside. This show is called crypto espresso because we are combining everything that we just did in coffee and crypto. That went, live 9, 30, an hour long show into about a five minute, video, so theres. A lot more content that happened on this morning show where i break down exactly why i believe a small correction is coming to ethereum and then a bigger rally might ensue. After that, so make sure to go and check out coffee and crypto its up on the channel. Make sure you look at that, because youre not going to want to miss it guys we have some more content lined up for you this afternoon. Make sure you subscribe. If you havent already and tell 10 friends, if you enjoy the crypto jeb youtube channel, if you think were providing you value, your friends might also its all. I got for you today before i go. I do just first want to thank each and every single last one of you for watching.