Technical analysis of Ethereum for May 4, 2021

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Way back in February we showed that Ethereum broke out of a 3 year Cup with Handle formation at 1,384.78 which called for a rally to 2,674 or maybe even closer to 3,474 if the extended Cup with Handle target came into play. This is exactly what has happened and we have now seen a test of the extended Cup with Handle target at 3,474 and we should now expect a violent correction in the weeks to come. This correction will likely hit 2,174 and possibly even the 50% correction target at 1,773 before turning higher.

That said, the alternate corrective outcome is a triangle consolidation. In this case we shouldn't expect a correction deeper than 2,674 but instead use up time in a sideways consolidation.

Trading recommendation:

It's time to sell the position from 1,385

The material has been provided by InstaForex Company - www.instaforex.com

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