On a Postive Note - Macro vs. Micro
Updated
Since Etherum formed its latest bottom of $80 and bouncing nearly 100% the crypto community received a glimpse of hope that crypto may rally once again.
Since we were rejected at $160 for the second time I have seen an overwhelming amount of bears come out of the woodworks.
I am not posting this chart to say whether I am Bull nor Bear, I am merely here to support explain the support and resistance and to show how & why the ETH chart could turn Bullish.
The Macro Resistance:
The 160 level marks the .886 fib retracement from $5 low in December of 2016 to the all time high of $1400 in January of 2018. Hence the Macro :)
Over the course of the last 2 years, this level has been tested multiple times. The first several times on ETHs way up to its all time high, and then twice more on its way down.
So being rejected from this brick wall of resistance on the second try is no surprise to me.
The Micro Support:
Currently at $131, Ethereum sits on .236 fib extension. Which it seems we are trying desperately to break to keeps getting rejected.
This being said, from a Micro point of view, I see no reason to be completely bearish yet. The .236 and .382 trend based extension levels are key to hold to support additional upward movement. So from a Micro point of view thing are looking good.
The Macro Patterns:
Holding these two micro support levels will also support two possible Bullish patterns. ETH currently has the possibility to for form and complete An ascending triangle pattern & an inverse head and shoulders pattern.
Both of these patterns would complete themselves if the .382 support level holds and go up to break the major resistance at $160
Summary:
Macro vs Micro - at first glance it appears that the major resistance level at 160 is a huge win for the bears. However with the possibility of the minor support levels holding and the major bullish patterns forming, leaves room for the Bulls to gain some momentum to break the major $160 resistance.
My plan of action:
I have already exited my long from the $100 level and am hoping to re-enter around $112, as this marks the .382 trend based extension.
Only time will tell, and unfortunately this market is in no hurry to get anywhere.
Cheers and good luck!
Note
Pattern to support the Inverse Head and ShouldersNote
Hourly chart is showing multiple bull divs building up with weak momentum. Could be a chance for a leg up as a lower low is not formed. We will see if this follows through.Note
At the resistance line once again. Lets see if we can break it this time around.
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