A week ago, I noted that Ethereum's (ETH/USD) price action suggested further downside to $300 (based on Coinbase price). A week later, price action has been flat, and is possibly forming a rounded bottom. So for now, we will shelf the $300 projection, and anticipate some recovery at least in the short-term.
ETH/USD 4H Chart
Rounded Bottom - Accumulation
- Accumulation describes a relatively long period of consolidation after a downtrend.
- In the 4H chart, we can see that price has been ranging roughly between $360 and $420.
- The low on April 1 has higher lows on each side, giving this consolidation a slight bullish bias.
- The 4/9 session price action which held ETH/USD above its 200 4H simple moving average was also a sign that we might be bottoming.
- The thing is, even if we have a bottom, that does not mean ETH/USD is out of the woods. The bearish scenario is still live, but we can anticipate some recovery back towards $500-$515 another key support/resistance pivot area.