ETHUSD Possible H&S Breakout Into Ascending Parallel Chan
Updated
Just wanted to share some observations on ETHUSD. Early days yet and nothing is confirmed. Wait for breakout and observe if the upper line of the Ascending Parallel Channel pattern forms a resistance and that the bottom line forms support. If it does then we have some way up to go on a longer term with this pattern and can continue trading within the ascending parallel channel with tops and bottoms, if it plays out. Some might call this a bear flag but not after that daily close and the formation of a possible H&S Shoulders Pattern which is usually a bottoming and reversal pattern.
This could still also just continue on the descending parallel channel pattern too (the dark area).
Only trade breakouts with confirmation candles and beware of fake-outs.
Also take note that since ETH price is correlated with BTC price movements, the CME high candle close on the Friday was around 5935 and the low wick was 4120. We might range within these price points till Monday but hoping for a weekly candle close above the 200MA around 5500$.
Good luck.
By the way BTCUSD forming the same patterns too.
This could still also just continue on the descending parallel channel pattern too (the dark area).
Only trade breakouts with confirmation candles and beware of fake-outs.
Also take note that since ETH price is correlated with BTC price movements, the CME high candle close on the Friday was around 5935 and the low wick was 4120. We might range within these price points till Monday but hoping for a weekly candle close above the 200MA around 5500$.
Good luck.
By the way BTCUSD forming the same patterns too.
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By the way if you do not know, here is where you can update yourself with the daily refreshed crypto fear and greed indicator: alternative.me/crypto/fear-and-greed-index/Note
Here is an inverse head and shoulders pattern that broke out into an ascending parallel channel signalling a bottom and reversal when the price touched 6400 and stayed in the ascending parallel channel till price hit around 10500 before topping out and breaking down to our current lows. This was around December 2019 into 2020.
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Made some minor adjustment to the ascending parallel channel. Slim chance it plays out. Need the Inverse H&S breakout for the channel to have a possibility. For now sideways with low volume. Note
Here's an update. Still waiting.Note
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Wanted to share some ideas and thoughts on how to use smaller time frames to detect possible important patterns and signals that could give you an early advantage on what to do next. Also giving you an idea what your higher timeframes will look like if the move is sustained in the smaller timeframes. Even possible reversals and new pattern formations can be discovered early.Note
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Take note that it is advisable after and if the retest bounce above the top of the channel resistance turn support is successful, you might still want to wait out and check if BTC can reclaim the 200MA Weekly level at around 5500 which is very near this price action that is happening. This is also a critical Moving Average that BTC needs to regain for the weekly close candle later today.The 5500 for BTCUSD would be around ETHUSD 130 as if you see the lower time frames both have similar rejection candles at their respective price points.
Good luck!
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Breakout happened. Just remember to keep create your stop loss in profit once you have a comfortable sum. Lots of uncertainty now. Take what is given and be safe. If it keeps going your way to next support, add into order in small portions if you can and immediately keep raising the stop loss in profit so you have a guaranteed sum no matter what happens. There will also be a CME bloody Gap if price goes above 5935 (cme high price on Friday daily candle close) and or lower than 4120 (cme candle lowest price on that same daily Friday candle.So its risky to be holding trades not knowing if the CME Gaps will move the price to cover those gaps which might trap you underwater again if you are not careful.
Good luck and have a great week! Cheers!
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