Ethereum H%S Scenario When Support Cant Be Held!
Updated
Hello friends, there are some important and significant signs revealing the outcome in the second-largest cryptocurrency ETHEREUM which I take a look at and in which we saw some heavy up-moves with good volatility in the last time but was that all strong enough to continue the next time? There are some interesting and consequential signs right now on the locally time-structure which have to be taken into consideration before looking at the possible further outcome.
When looking at my chart we firstly see this huge huge upward-rising channel in which ETHEREUM is currently trading, secondly, we can expect a correction coming soon the next time. Taking an insight at the overall structure of the previous high and the high which formed recently we can see an original textbook possible double top forming, this is a reversal formation which breaks normally to the downside when confirmed, as you can see it marked with the left head and right head in my chart.
Now this formation gives a solid reversal signal to the downside when confirmed below the neckline which you see marked in grey in my chart. However, there is also the other option that ETHEREUM manages to confirm the local support-level as valid support which forms the starting of the next wave to the upside, in this scenario, we have to confirm the support between 160 and 165 before moving upward otherwise the bearish double top pattern will play out correctly.
For now, we have to wait and look if ETHEREUM manages to keep the local support-zone and move higher from that point or it turns out as a weak support-zone which breaks to the downside. When the second scenario sets in as you can see it in my chart the confirmed double top formation can be traded on the SHORT-side with targets at 136 to 132 USD. therefore we have to confirm below the neckline you see in my chart when that scenario plays out we have a strong bearish confirmation to the downside.
Alright my friends, thanks for watching, may all luck and happiness come to you and of course good trading profits. Feel free to support for more insight ;)
Don't forget as I always use to say: The men on the trading floor may not have been to school, but they have Ph.D.’s in man’s ignorance.
In this manner: FAREWELL
Information provided is only educational and should not be used to take action in the markets.
When looking at my chart we firstly see this huge huge upward-rising channel in which ETHEREUM is currently trading, secondly, we can expect a correction coming soon the next time. Taking an insight at the overall structure of the previous high and the high which formed recently we can see an original textbook possible double top forming, this is a reversal formation which breaks normally to the downside when confirmed, as you can see it marked with the left head and right head in my chart.
Now this formation gives a solid reversal signal to the downside when confirmed below the neckline which you see marked in grey in my chart. However, there is also the other option that ETHEREUM manages to confirm the local support-level as valid support which forms the starting of the next wave to the upside, in this scenario, we have to confirm the support between 160 and 165 before moving upward otherwise the bearish double top pattern will play out correctly.
For now, we have to wait and look if ETHEREUM manages to keep the local support-zone and move higher from that point or it turns out as a weak support-zone which breaks to the downside. When the second scenario sets in as you can see it in my chart the confirmed double top formation can be traded on the SHORT-side with targets at 136 to 132 USD. therefore we have to confirm below the neckline you see in my chart when that scenario plays out we have a strong bearish confirmation to the downside.
Alright my friends, thanks for watching, may all luck and happiness come to you and of course good trading profits. Feel free to support for more insight ;)
Don't forget as I always use to say: The men on the trading floor may not have been to school, but they have Ph.D.’s in man’s ignorance.
In this manner: FAREWELL
Information provided is only educational and should not be used to take action in the markets.
Note
ANALYSIS UPDATE: The most important part for ETHEREUM has been the crucial 170 level because it decided over the bullish reversal.Sinc ETHEREUM has shown the ability to bounce within this zone it emerged with the important breakthroughs over the range.
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