Today we’ll try to understand what will be the way ETH should follow next to stay strong, and to determine which are buying zones. Regarding the 4H graph, my guess was correct and it came straight to the next resistance zone to create a consolidation zone. Let’s see now how long the consolidation will last, but for now it is stuck in it. But a look at the daily and weekly graph gives some sights of the future IF it stays strong (no need to recall that those are theory to find where to get in and where to get out and no crystal ball to predict future !)
In the previous graph I drew a possible consolidation movement that we can understand looking at the daily and weekly graphs.
On the daily one, we can see a nice forming cup that will join the next resistance zone built on the long term of ETH. The next step would be the zone between the next resistance zone and the orange trend line drew by the weekly graph. This way could be direct in case of a very strong ETH or it could take a new consolidation form (green arrows based on the last uptrend resistance zones).
Let’s be aware that on the 4H graph RSI and MACD are already high, on the daily graph RSI is slowly closing the overbuying zone, BUT on the weekly graph it is only getting positive at the moment and a bullish market does not restrain a very high RSI for a long time.
To resume, I would say that for a long term investment the next buying zone would be around 230 $ if it continues to break up, and then 290 $ if it breaks the resistance zone and the trend line.
For short term investment, you can always try to get in at each resistance zone on the 4H graph but do not forget that the crypto market is still highly volatile and a short term investment needs high frequency controls of the investment theory.
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