Ethereum is in a nice bullish pennant and has been trading above the $1727 mark again since yesterday. The ema's are still running up with the bulls and the momentum remains almost the same. The volume profie is starting to decline which is a good sign as the price is heading towards the apex of the pennant. The rsi has managed to get above the 50 level and the ema and is moving in a sideways range. The rsi seems to want to test the ema again, the best thing would be a best bounce on the ema so we can move towards ATH.
day chart: https://www.tradingview.com/x/iU2HtB1O/
Last night there was a bearish rejection on the supply zone. If we measure this move with the Fibonacci tool we see a 0.618 retrace in the inefficiency block. In this zone we also find the ema's where the ema100 and 200 are still bullish. The ema55 is also going to cross bullish again today as it looks to the other two ema's. The rsi has made a good spurt upwards and is currently in overbought territory. A small retrace would therefore be only natural.
4h chart: https://www.tradingview.com/x/khtDVmg2/
Here the price seems to be in a descending channel or bull flag. This is curved because local LH and LL are visible. The ema's are now also in bull mode here and have confluence with the inefficiency block. The rsi dipped below the ema last night and spent the night there. The ema is slowly pushing the rsi down and already giving me a slight confirmation that we are going to visit the inefficiency block
1h chart: https://www.tradingview.com/x/Y7dOloEm/
Conclusion:
I expect that we are going to fill the inefficiency block this week and then move back up. The horizontal support at $1727 is the level I am keeping an eye on. If we lose it then a bearish breakout of the pennant would be quite possible. Support is then at $1537.
However, it may be that we are not going to fill the inefficiency block. Then I would like to see on the LTF another test on the supply zone that serves as resistance before we get to the ATH. If the supply zone is going to be broken and successfully tested back, then the way is open to put a new ATH on the chart.
