ETHUSD, new bearish pattern continuation (Sym triangle)
Updated
Looking at ETH/USD on the 1 hour charts, we see a strong resistance line drawn above which price has bounced off multiple times. This was setting up a bullish triangle, that was broken (shown by dotted green trend line). The current short term trend is bearish now. We must redraw our trendlines.
We start off with a bearish channel that has been broken, shown by the parallel red dotted lines. A new formation is taking place in short term chart, which appears to be a symmetrical triangle. This would appear to be a continuation pattern for another small downward trend. This puts us at the resistance level of $280, (31% fibonacci level), and price should bounce from here, or form new pattern.
If we keep our eye on the charts, we should keep our eyes on the resistance levels as this will be our key to whether a reversal or continuation will occur. If we see a bounce from $280, this was a minor profit taking, we should redraw at this point.
However if we see a bounce occur with large volume at either the 61.8% or 50% support levels (resistance levels for bearish trend), we may act upon these. These represent good buy opportunities and are represented by the black dotted horizontal lines.
Pay special attention if price reaches these levels. If we see it blow past, we know there is some failure happening, and we will be bearish and redrawing patterns. However, if price maintains this level and bounces upwards, we should see the resistance level turn support with further upward momentum. Keep in mind this is a 1 hour chart, so look closely at 4hr, and 1D charts for further confirmation.
Let me know your thoughts!
We start off with a bearish channel that has been broken, shown by the parallel red dotted lines. A new formation is taking place in short term chart, which appears to be a symmetrical triangle. This would appear to be a continuation pattern for another small downward trend. This puts us at the resistance level of $280, (31% fibonacci level), and price should bounce from here, or form new pattern.
If we keep our eye on the charts, we should keep our eyes on the resistance levels as this will be our key to whether a reversal or continuation will occur. If we see a bounce from $280, this was a minor profit taking, we should redraw at this point.
However if we see a bounce occur with large volume at either the 61.8% or 50% support levels (resistance levels for bearish trend), we may act upon these. These represent good buy opportunities and are represented by the black dotted horizontal lines.
Pay special attention if price reaches these levels. If we see it blow past, we know there is some failure happening, and we will be bearish and redrawing patterns. However, if price maintains this level and bounces upwards, we should see the resistance level turn support with further upward momentum. Keep in mind this is a 1 hour chart, so look closely at 4hr, and 1D charts for further confirmation.
Let me know your thoughts!
Note
One day charts. Support levels at $275, $238. The trend is there.
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