ETHUSD made a breakout at an up-trending trend line yesterday on the daily chart. Today’s price action suggests that the price is having an upward correction. However, a breakout always attracts traders to go with the direction of the trend, thus any intraday downside breakout might produce another bearish daily candle today as well. Let us have a look at the daily chart.
The Daily Chart
This was the trend line which was breached yesterday. The breakout took place right from the support point of the trend line. Thus, it might need two corrective daily candles to complete the correction. Ideally, daily traders should wait for the correction followed by a daily bearish engulfing candle to take a short entry here.
The H4 chart suggests that a short entry might be on the cards soon. Let us have a look at the H4 chart to see what it has to offer to the traders.
The H4 Chart
The H4 price action suggests that the price is having a consolidation. The level of 274.80 is the level of resistance and the level of 259.55 is the level of support here. If the price produces an H4 bearish engulfing candle breaching the level of support, then the price would head towards the South as far as the H4 chart is concerned. The next level of support may be the level of 227.15 in this case.
The Bottom Line
The way the daily and the H4 price action have been going, we might end up getting an engulfing weekly candle this week. If that really happens, then ETHUSD will remain bearish for at least two more weeks. To end up the weekly candle as a bearish engulfing candle, the price is to stay around where it is now or below. A lot of equations are coming ahead. Let us wait and see how it ends.