ETH/USD analysis and current trade projections
ETH/USD has been in a consolidation pattern for many months now since the previous ATH in June. This consolidation pattern is referred to as a Pennant and is outlined with blue trendlines. Price broke above the top trendline indicating a trend reversal to the upside. This was confirmed by the following candles closing with higher lows and higher highs. Third confirmation is heavy volume coming in at that area. This would have been a great buy entry.
Anyway... on to current projections.
New ATH at 520 and Indicators (StochRSI and RSI) are both overbought and embedded. Heavy sell volume came in as well. Here is where my 1st Fibonacci retracement will help determine entries and support and resistance. Fib buy zone at .618 at $370-$400 with a target extension of $574. Price hit .618 buy zone nicely and went up to previous ATH forming a double top. Second fib retracement shows support at the $446 level. Also you could add to your position there at the $446 support level if you wanted to.
I am holding here to sell at my Fibonacci extension level at $574. Smaller extension price level at $545 which you could take profit there as well.
I am fairly new at this -- I have been practicing my chart analysis, trade strategies, and technical analysis in general for a few months. I am posting my charting with my thought process and trade entries to test myself and to welcome feedback from the community.
More to come :) Thank you!
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