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No matter how you look at the Ethereum price chart, the Altcoin price is doing a whole lot of nothing right now!
This type of sideways market is known to be brutal, complicated, and very dangerous to trade. It has led to the downfall of many experienced and newbie traders in this field.
The best thing you can do right now as a professional trader is to stand aside and protect your capital while this sideways/ranging market continues for now.
But we do expect sooner or later to see the end of this ranging phase in the ETH price, then and only then can we take advantage of the trend that will follow from the breakout.
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How Soon Can This Breakout Happen?
No one knows for sure when the Ethereum price will break out from the ranging market or what direction the trend would take. However, we do know the key levels to watch out for and what to expect once the price starts moving.
And those key levels are the horizontal support and resistance zones on the 4-hour timeframe. The ETH price has respected these zones over and over again in the past and might continue to do so.
In the coming days, we will be watching these levels intently to see how the ETH price reacts to it and then take a trade based on that.
But for now, the ETH price does not look good or tradeable, and is best for traders to stand aside and wait for higher probability trade setups to show up.
A Pattern Play: What Role Does The Converging Triangle Pattern Play?
The converging triangle pattern plays a crucial role because it helps us visually understand what is going on between these two key resistance and support zones we talked about in the section above.
We can see the Ethereum price gradually compressing as it continues to trade within these zones. This compression-only means that the price is building up momentum for a coming move.
The power this breakout will have will only increase as the Altcoin moves closer and closer to that APEX point of the pattern. At that point, the Ethereum price will be unable to stay compressed for long, and sooner or later that price compression on the 4-hour timeframe will lead to a massive move in Ethereum.
This move would lead to price breaking out of the converging triangle pattern and potentially out of the ranging zone. Once the price is out of these zones we can expect to see the Altcoin become volatile again and begin making huge moves as it has always done in the past
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