The current ETH situation | ETHUSD | BULLISH OR BEARISH?
ETH has been on quite a run lately based on fundamentals moving from $1700 up to the price of $2400 in the past 10 days, however the price has been consolidating within the current price for the past few days. This is never bad as the price needs some time to create more support and to rest so it is not seen as overextended leading to a sudden drop off top.
In the following paragraphs I shall be discussing my honest opinion on the current ETH market, however, everything I state in this article is based on my own opinion and should not be taken as a signal to buy or sell your ETH.
in order to understand what is going on in the chart analysis above ill start with the pennant formation marked in yellow. As you can see this formation broke to the downside, which theoretically is how these formations play out, as they are continuation patterns and the origin (flagpole) is from a bearish movement. The price bottomed out after the breakout at the $1700 level. Another formation was created there after which is also a continuation pattern.
The megaphone formation: The name derives from the fact that it looks like a megaphone which is fairly obvious. These formations generally are a strong confluence among other confluences that the price is going to move a certain direction. As the formation is a continuation pattern the pattern theoretically breaks out according to that, which it did. The target point (TP) of this formation will put ETH at around $2500, which is very convenient and almost to obvious, as the long term 50% fib retracement level sits within a few dollars from the TP adding further confluence to my prediction.
Therefore it could be strongly argued until proven by price that we are within a consolidation phase, just as most of the market is. The range in which we are consolidating seems to be between the $1700 level and the 50% fib retracement ($2523), However the Golden pocket will also play a key role and keeping the price back before it reaches these levels of support and resistance.
The MacD is almost slowly beginning to turn to the bearish momentum which will line up perfectly with the TP being reached and the retracement to the Golden pocket being a reasonably valid prediction, if the price plays out the way the technicals indicate.
Therefore for the short term at least I remain neutral on the price of ETH. This area of consolidation can be seen as a great buy in area for those who are in for the long term, but for those who are trying to make a quick trade, I advise you wait for a move out of the range of consolidation before you place a short term trade, as the market is very tricky lately.
Don't forget to leave a like if you agree or disagree with this article and if so leave a comment explaining why you disagree, am always open to different perspectives. Happy trading and thank you!
#notfinancialadvice
In the following paragraphs I shall be discussing my honest opinion on the current ETH market, however, everything I state in this article is based on my own opinion and should not be taken as a signal to buy or sell your ETH.
in order to understand what is going on in the chart analysis above ill start with the pennant formation marked in yellow. As you can see this formation broke to the downside, which theoretically is how these formations play out, as they are continuation patterns and the origin (flagpole) is from a bearish movement. The price bottomed out after the breakout at the $1700 level. Another formation was created there after which is also a continuation pattern.
The megaphone formation: The name derives from the fact that it looks like a megaphone which is fairly obvious. These formations generally are a strong confluence among other confluences that the price is going to move a certain direction. As the formation is a continuation pattern the pattern theoretically breaks out according to that, which it did. The target point (TP) of this formation will put ETH at around $2500, which is very convenient and almost to obvious, as the long term 50% fib retracement level sits within a few dollars from the TP adding further confluence to my prediction.
Therefore it could be strongly argued until proven by price that we are within a consolidation phase, just as most of the market is. The range in which we are consolidating seems to be between the $1700 level and the 50% fib retracement ($2523), However the Golden pocket will also play a key role and keeping the price back before it reaches these levels of support and resistance.
The MacD is almost slowly beginning to turn to the bearish momentum which will line up perfectly with the TP being reached and the retracement to the Golden pocket being a reasonably valid prediction, if the price plays out the way the technicals indicate.
Therefore for the short term at least I remain neutral on the price of ETH. This area of consolidation can be seen as a great buy in area for those who are in for the long term, but for those who are trying to make a quick trade, I advise you wait for a move out of the range of consolidation before you place a short term trade, as the market is very tricky lately.
Don't forget to leave a like if you agree or disagree with this article and if so leave a comment explaining why you disagree, am always open to different perspectives. Happy trading and thank you!
#notfinancialadvice
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