Unless ETH breaks this descending channel in the next 1-2 days..
We can see lower highs and lower lows forming in all short term timeframes. Unless ETH breaks this descending channel in the next 1-2 days, the eth bull run is over (normally a 2 day retracement is not a bad thing after such a bull run, but considering Eth futures launch on 8th Feb... Expect very high volatility). I highlight a potential small daytrade long entry at the 0.382 fibonacci level (1289.7) which also lines up with the descending channel support, with a stop loss just below the local demand zone. I would short the top of the channel and long the bottom of the channel (tight stop loss on long in case it crashes harder than expected).
In summary: Short term (next couple of days), I'm short, unless i see this pattern breaking. After that I would stay out of the market to see how Eth will react to futures launch.
In summary: Short term (next couple of days), I'm short, unless i see this pattern breaking. After that I would stay out of the market to see how Eth will react to futures launch.
Note
As we can see from this image of ETH/EUR, BTC/EUR, ETH/BTC, all 3 pairs are currently on an ascending channel for the last 3 days. This does not mean we should go long yet. BUT, if the ascending channels continue and they break the highlighted key resistances, we can see a BTC breakout and then a continuation of the ETH breakout.
Note
Breakout confirmed, and also broke out of key level of 1410. I now use 1400 as my stoploss.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.