ETH Closing in on Support level

Updated

On the left you can see a blue trend line i have drawn. A week ago it looked like the neckline of an inverse H&S, but now it seems as if that same line still has a lot of value. When zooming out, ETH looks great, forming what looks like a big bull flag. There is one big danger though and that is the lower high we made a few days ago. Lower highs is very normal for bull flags, actually what we want to see, but their positions compared to the previous ones is very important. Why i have drawn that curved line, because i believe that line has to break soon. Otherwise it could mean that bears are still in control here and that when that blue trend line breaks, it could drop even more. There is a big support zone around 245/35.

So think big resistance around 275/77 and for now support around 263/4.

Previous analysis:

Note

It took only a few min for ETH to dump after my analysis, broke the important support and even dumped quite a lot with high volume. However, it is bouncing up quite strong and is almost above that trend line again. So either the line is fake, or bulls are defending it with a lot of force.

Think if bulls can break through 266/67, this whole move might have been a bear trap. So bit similar to bitcoin, where bitcoin did not drop that much, but both are showing a strong bounce up so far.

Note

The resistance zone rejected it around 267, now back at the low. But still some things are off here. Not seeing any real panic selling yet, OI is stable, even funding is picking up now.

Assuming the trend line on the right is real, it broke yesterday, retested and now back down but not pushing through. Which normally means bears are to weak (or bulls too strong).

So think as long as we stay above the 254/56, we could make a move up again. Bulls would need to break that red trend line around 260 as a first step.

So still bearish view, but holding back now because of these possible signs. Hope a break of one of those 2 levels will give us a real move again.

Note

For ETH, the support broke, now still in a big support area, but bulls need to break 250ish soon, otherwise big chance it will continue. Also check my Bitcoin updates, bit more detailed

botje11

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