Hello, dear traders.
Ethereum is moving in an uptrend. Locally, we see a correction forming in the form of a descending wedge.
The price is already close to the trend support level. According to FRL rules, an exit from a descending wedge is considered valid when the price consolidates above the start of the last impulse of this wedge, because its lows constantly update the lows.
Thus, at the moment, this level is at a price of 4500. But this wedge may continue, and this level may drop lower. In any case, this is already a great level that will break this descending wedge. In addition, a bullish divergence is forming on the MACD in H4.
The target of the potential downward movement is the 1.382 level according to Fibonacci levels.
These are my thoughts. What are your thoughts on the current situation?
