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ETH do we have a new trend in play?

Published: 23.03.2023
by Joseph Jeffriess

Hi traders, here is a quick look at ETH on its weekly chart.

What currently has our attention is the new higher low after buyers broke two points of resistance last week. This is a promising sign after seeing a price breakout of what could be an ending diagonal. EDs are commonly seen as reversal patterns, and seeing the latest price action, this is a solid follow-up after the breakout. I have marked two points for the ED, but for now, the HL and breakout could indicate that buyers are trying to take the market higher.

From this point, ideally, we want to see buyers hold last week’s candle,  as there has been a bit of selling, but that’s not uncommon after such a strong move higher. If buyers can maintain control, we want to see a new move that tests 2007. A break of that level could start telling us buyers have a new trend in play.

On the flip, if sellers can break last week’s low, that would be a concern, meaning we would be back on the sidelines looking for fresh evidence that buyers have momentum back.

ETH W1 Chart

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