ETH Bearish Wedge, or Bulls just Taking a Break?
Updated
The whole market has been moving sideways for more than 3 days now and ETH' has been a weak link these days. Forming some top formation, but volume on dropping a little bit. Now the difficult thing here is, just as with Bitcoin', the Holiday's have influence into how the charts/pattern look like now. It's difficult to say if we should ignore it or that it is simply just what it is.
Now i don't like this wedge that much, but just like the one i showed with Bitcoin', it's better to be aware of things, rather than ignoring them. The past 2 days it looked like bears were taking over and saw some good drops in the price, but no follow through. Yesterday it looked even more bearish, but then we got a good push upwards, but it was not enough to break the bearish pattern and the heavy resistance. But on the other hand, bears ar also failing in pushing the price down. So where it was taking too long for the bulls, it is almost becoming the other way around now. Meaning, the longer the bulls keep it above that green support on the right, the bigger the chances become that all of this was just noise and a standard consolidation/correction of the rally so far.
Bigger picture, based on the strong volume rally we had from the lows, there is a chance we could see something like the blue line happening the coming weeks. But that really needs a big volume rally again. Otherwise the red lines become more likely to happen. In other words, either we form a big V shape low on the big picture (when zooming out some more) and showing a potential long term low. Or we start to retest the green support on the left again, meaning a long term low is less likely.
So for now the 145/147 zone needs to hold for the bulls. And if support break, bears need to make sure the volume increases as well.
153ish seems to be a very obvious resistance now, if that breaks, we could see an attack at the 160ish again.
Please don't forget to like if you appreciate this :)
Previous analysis:
Now i don't like this wedge that much, but just like the one i showed with Bitcoin', it's better to be aware of things, rather than ignoring them. The past 2 days it looked like bears were taking over and saw some good drops in the price, but no follow through. Yesterday it looked even more bearish, but then we got a good push upwards, but it was not enough to break the bearish pattern and the heavy resistance. But on the other hand, bears ar also failing in pushing the price down. So where it was taking too long for the bulls, it is almost becoming the other way around now. Meaning, the longer the bulls keep it above that green support on the right, the bigger the chances become that all of this was just noise and a standard consolidation/correction of the rally so far.
Bigger picture, based on the strong volume rally we had from the lows, there is a chance we could see something like the blue line happening the coming weeks. But that really needs a big volume rally again. Otherwise the red lines become more likely to happen. In other words, either we form a big V shape low on the big picture (when zooming out some more) and showing a potential long term low. Or we start to retest the green support on the left again, meaning a long term low is less likely.
So for now the 145/147 zone needs to hold for the bulls. And if support break, bears need to make sure the volume increases as well.
153ish seems to be a very obvious resistance now, if that breaks, we could see an attack at the 160ish again.
Please don't forget to like if you appreciate this :)
Previous analysis:
Note
Clearly the H&S played out this time, but what a dump. We are at support now, so we could see some moves up, but it will be likely to form a right shoulder. unless we see a Bart move with Bitcoin, it's likely we will see a test of the 120 support zone the coming week or so. With 140 being the first big resistance now
Note
New ETH analysis:
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.