Technically Speaking – November 29, 2023

Congestion and consolidation all around – that’s the name of the game. 🎰

Unfortunately, things can’t always go Moon and Lambo; sometimes they pull back, and sometimes they park and bark.Β 

Ethereum

$ETH, like the majority of the market, is experiencing a little breather.Β 

On Ethereum’s daily chart, the Ichimoku system is warning of either a prolonged congestion phase or a return to upside price action. The key thing to watch is the Chikou Span.Β 

ETHUSD Daily Chart – Click to enlarge.

When the Chikou Span is no longer in open space (a condition where the Chikou Span won’t hit the body of a candlestick horizontally over the next five to ten periods), it is the first warning that consolidation has a high probability of happening soon.Β 

The Chikou Span, at its current level, will hit a candlestick body in six days. If Ethereum is going to return to an expansion phase and move higher, the Chikou Span will need to stay above the candlestick bodies.Β 

When dealing with consolidation, the question is: when will it end? That’s where one of the coolest parts of the Ichimoku Kinko Hyo system comes in. 😎

In Manesh Patel’s Trading With Ichimoku Clouds, he identified a behavior I call the two-Cloud theory. Patel wrote that when the upper and lower Clouds are both pointing in the same direction as the future Cloud, that is often the point when explosive moves occur.Β 

Two are coming up (the blue rectangles on the chart); the first is between November 30 and December 1. The second is between December 3 and December 4.Β 

So, if Ethereum continues to trade sideways as it approaches those dates, keep your eyes open! πŸ˜€

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