We are going to be talking about ethereum because there are some technical indicators and short formations on ethereum right now that are telling me that we might be about to see a bit of a correction. So is the ethereum rally thats been going on ever since late september about to come to an end? Are we going to see a drop and if so, how far may we go before? We finally see a movement really far and fast to the upside were going to talk about all of that in more todays videos, so without much further ado lets go ahead and dive right on into it. Guys, as you know, ethereum is in a massive, ascending triangle pattern, and i want to be very clear right off the bat i am bullish on ethereum and i do think its going to have a very powerful movement to the upside for the remainder of this year. So dont think im trying to spread fud, but it is my job to inform you on both sides, both the bullish and the bearish. So lets take a look here at the daily chart. The first thing that youll see is that ethereum right now is in a rising wedge. What does this mean? Well, basically, it means that ethereum is moving to the upside, but its moving to the upside in a pattern that typically breaks to the downside. Whenever you see a rising wedge, which is constituted by an ascending level of resistance and an ascending level of support like this, whenever the market moves into this, statistically speaking, theres a 70 chance that the market is going to break down out of that, as opposed to A 70 chance of breaking bullish out of a a descending wedge in this case.

There is a high likelihood that we should be breaking bearish out of this pattern, and if we were to do that, just looking down here on the four hourly chart, then we would likely see ethereum pull back down to a couple. Different levels number one, the first one and most obvious one – is the previous level of support. That is the level holding up the ethereum market, and that is right around four thousand four hundred dollars. Four thousand four hundred dollars is basically the all time high that we set back here in may of 2021, and that represents the highest level that we reached at that time. Its a very important level. Because of that reason, and if we do have a correction out of this trend out of this uh ascending wedge, then thats, probably where were going to fall down to, but looking back out to the daily chart, we can look at an indicator that i like to Use called the vpvr, it is the volume profile of the visible range, and basically, these bars over here show us all right. Where is the support and resistance for this market? As you can see, there is something called a vpvr maximum right here, which represents that theres, a lot of support down here at 1800 bucks, its unlikely, were going to go to 1800 bucks, so thats, not that important. But what is important is this little hump right here on vpvr. It shows that we have support right between about 3 800, moving all the way up to 4 400.

So the good news is here guys. We have a lot of support in the zone between 3, 800 and 400.. On top of that, we also have strong support sitting here at 4 000, as that is a local top that we set here on the 4th of september, and it is also a big, even meaning that its essentially a level of support, that is a nice whole. Even number people like to buy and sell around big hole, even numbers like 4 000. people, dont like putting trades or they just dont – tend to put trades at ‘47.15 cents. You know they put it at four thousand dollars, just because thats how human psychology works. So if ethereum does need to break to the downside here, we could see corrections all the way down to 3 800, but i dont think that were going to go that deep. I do personally believe that ethereum is going to have a correction out of this rising wedge, but its probably not going to be that severe. In fact, we might only pull back down to about 4 400 bucks and were sitting at 4 500 right now, so that would not be that massive, but theres a few different reasons. Why i believe that that might occur. Looking at the four hourly chart here, we can see if we look at our rsi that there is something called rsi divergence. Rsi is an oscillator. Oscillator just means that it sits down here at the bottom of your chart.

This oscillator basically tells us how strong are the bulls or the bears the bulls the people buying. The market are represented by the rsi being up here at the top and the bears the people selling the market are represented by the rsi being down here at the bottom. If we look at the rsi and we draw trend lines which are what these lines are, connecting tops on, the four hourly chart right here and the four hourly chart rsi right here, we can see something that is very important, called rsi divergence, theres an uptrending level Of resistance on the price action chart and then theres a downtrending level of resistance here on the rsi when those two are divergent, meaning that theyre moving in two separate directions. It essentially gives us a sell signal. Its essentially telling us hey. The market is likely to have a correction here, so we have multiple different chart formations right now, telling us hey ethereums a little bit overextended its had a good run, but we need to calm down and heres. My final reason why i believe that were going to see some at least consolidation movement, which means sideways movement uh rather than just another blast off for ethereum ethereum has rallied if we measure here uh eighteen hundred dollars, which is sixty eight percent in the span of 36 days we have added a couple hundred billion dollars in market capitalization to ethereum. You can see. Ethereums market cap is sitting at over half a trillion dollars right now.

Thats the total value of the ethereum market, weve added some 200 billion dollars in just over a month and by doing so, ethereum has kind of gobbled up a lot of the buying pressure that was originally going to help prop it up. I think ethereums going to have a hard time continuing this rally, especially as other projects like solana, start to go on absolute tears and break their all time highs. I think that ethereum is going to have a slightly bearish weekend. I think it could see a correction for three to seven days and then after it sees that correction for between three and seven days, it will uh eventually start to round out in the bottom somewhere around around four thousand, maybe four thousand two hundred dollars and then Its going to have a very bullish rest of november, it might even end up looking something like what we saw on bitcoin, where bitcoin had a big breakout rallied above his previous all time high, then it kind of has been uh in this kind of rounding bottom Formation over the last 14 days, i think, were about to see something similar happen on ethereum, so if you guys have a similar take or especially, if you have a different take on where you think ethereum is going next, please tell me in the comment section down Below i love reading your comments, if you think ethereum is about to moonshot, let me know if you think ethereums gon na do what i think is gon na do and have a short term correction for three to seven days, followed by a rounding bottom, followed by A big break to the upside uh, moving on towards the end of november, tell me that down below and also if you enjoyed this video, make sure to smash that, like button weve been getting a couple thousand likes on these videos lately, i really appreciate it.

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