When weeding through the daily price chart of ethereum it turns out that the weekly is pretty much right in sync so in this post I use the weekly. This makes it much easier to see the full view of ethereum and how close we are to the all time high and why price is consolidating here.
Just one push away...
What a 4 week run!
Price doubled in a 4 week span going from the low 600s to the 1200s before beginning to consolidate this past week.
I'm usually wary of moves like this cus often violent pullbacks follow. This did kind of occur as the spike low from last week took price as low as 905.
The bullish thing is it immediately rebounded to close the week above the 1,215 level, which is the second highest line drawn on the chart.
That's looking high and tight!
If price can maintain up here for a while it is what some of my fellow traders uses to call "high and tight" which was one of their favorite bullish setups as the expected another leg higher.
This is exactly why I'm not sweating this aggressive moonshot higher the way I normally would.
If this "high and tight" pattern plays out then we should expect to see that push to the all time highs in the high 1300s.
Then its a wait and see how price reacts when it gets there.
This is obviously the near-term bullish outlook. On the opposite side if price fails to hold 1,215 then there is potential downside risk to the 950 area.
I'm sure the direction of bitcoin over the next couple weeks will have a large impact on which way ETH goes, so keep an eye on that too.
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