ETHUSD: A Confluence of Supports and Resistances
Bitmex ETH swaps revealed evidence suggesting a potential reversal point. After a +100% ROE from the bottom, a cascade of profit taking at key resistance levels ensued. Shown in the chart, you can see ETH wick a confluence of 2 resistance lines.
The expectation was a subsequent correction. Interestingly enough, ETH found support at the 1st of 2 support lines I have drawn.
From here, the assumption is that ETH will consolidate upwards towards the confluence of 3 trendlines. It’s too early to know whether the price structure will play out as a rising wedge or an inverse head and shoulders.
Alternatively from EW theory, the wick I spoke of earlier may have been the end of wave 1; price currently completing wave 2. For reference, I plotted out a potential 5-wave impulse with a target of ~252 coinciding with the 1.618 Fibonacci extension. Coincidentally (or not), the Fib extension lines up with a previous swing high (R).
Price action should be interesting leading into 2019. Stay safe and happy trades!
Sim
Disclosure: I am long ETHUSD swaps
The expectation was a subsequent correction. Interestingly enough, ETH found support at the 1st of 2 support lines I have drawn.
From here, the assumption is that ETH will consolidate upwards towards the confluence of 3 trendlines. It’s too early to know whether the price structure will play out as a rising wedge or an inverse head and shoulders.
Alternatively from EW theory, the wick I spoke of earlier may have been the end of wave 1; price currently completing wave 2. For reference, I plotted out a potential 5-wave impulse with a target of ~252 coinciding with the 1.618 Fibonacci extension. Coincidentally (or not), the Fib extension lines up with a previous swing high (R).
Price action should be interesting leading into 2019. Stay safe and happy trades!
Sim
Disclosure: I am long ETHUSD swaps
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