FED-Meeting To Bear-Decline BUT Ethereum Forms This Formation

Hello, just seconds after the FED yesterday announced its protocol about the last meeting which took place at the 14th and 15th of December Bitcoin and other Cryptocurrencies made a pivotal bearish plunge to the downside. The FED announced that it possibly plans to reduce its balance sheet of currently 8.3 Billion US-Dollar. Such a development can lead to important changes in the market interface for the stock market as well as Cryptocurrencies. Nevertheless, this is currently an announcement and the action wasn't taken yet. In this case, the market is currently testing previous support levels out and is looking if these hold or just the next leg to the downside emerges.

The FED Announcement And The Cryptocurrency Market:
In such a situation as traders in the Cryptocurrency Market, it is important to look on where the potential opportunities stay and therefore it is necessary to distinguish all the different Cryptocurrencies with the individual formations that they are forming because all of them are diverging especially within the recent times. There are Cryptocurrencies that are forming more bullish potentials while others have a higher likelihood of validation on the short-side. Therefore looking at ETH now we can watch that it moved directly into the 3400 USD level which it is now testing and on a broader scale, Ethereum is forming an important formation that still has positive possibilities.

Ethereums Formation Development And Upcoming Prospects:
Taking these factors into the consideration looking at my chart we can watch there that Ethereum initiated this main descending-triangle-formation with a coherent wave-count within the formation and a important confluence-point which Ethereum is now testing where the lower boundary accumulation range, the lower boundary of the triangle and the 250-EMA are coming together. If Ethereum manages to bounce within this zone and actually breakout above the upper boundary of the formation this will confirm the whole formation and Ethereum will setup for further continuations, in this case also the further target-zones will be activated. Therefore, it will be highly necessary to watch out how Ethereum evolves here because when it breaks down below the 3000 USD level the whole formation will be invalidated, it will be an important determination ahead.

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"The past, like the future, is indefinite and exists only as a spectrum of possibilities."

Information provided is only educational and should not be used to take action in the markets.