26th April 2022
In the ETH/USD daily chart, we can see that it’s now taking support on the all-time long-term bullish trend line. Retesting happened with a pin bar rejection candle, which indicates the initiation of a new short-term bullish trend.
Also, the daily RSI line indicates the bullish divergence signal, which also supports the mid-term trend reversal.
Near the lower trend line of the long-term bullish trend line, we can observe a rectangular midterm consolidation pattern formation and that price movement made the price break upward of two midterm bearish trend lines upward. That indicates the continuation of the short-term and mid-term bullish trend.
The current short-term bearish trend is now heading towards the lower trend line of the long-term bullish trend and the price took support around the 2820 – 2920 support zone which is also associated with a midterm trend line crossing.
Considering all that, we expect the ETH/USD to reverse its current trend into a short-term bullish trend around the 2820 – 2920 support zone and that trend will reach 3520 – 3630 resistance in short term to retest the upper trend line of the rectangular pattern formation.
In conclusion, ETH/USD is now in a major support area and retesting the long-term bullish trend line. We expect the short-term bearish trend reversal to happen at the current market price levels around the 2820 – 2920 support area.
Price will achieve the 3520 – 3630 area in the upcoming short-term bullish trend. So considering the price position, it’s a good buying opportunity at the current market price levels.
These short term and mid-term bullish technicals are valid as long as price stays above the 2430 – 2540 area , which acts as the next support area, so better to use that area as a stop loss.
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