[ETHUSD] Descending Triangle Short Potential $75 Target
Updated
ETH is back at it again. The small relief rallies we have seen off of the massive drop, all the way down to the low 80s, have started to become confirmation points for forming an upper bound of yet another descending triangle pattern. As you can tell in the chart, every rally has been stuffed off of the 100 ema (orange line), and while the bulls have mustered significant volume they cannot manage to hold any ground they have gained. The large hourly green candle with the spike of 84 to the 104 wick was a strong attempt from the bulls to regain control over the market. Unfortunately this candle wasn't met with additional buying volume and we can see the resulting negative price consolidation that followed. The bulls really needed to rally around that spike if they wanted the chance to continue driving the price up.
Unfortunately it looks like the bulls are just running out of steam to continue pushing a bullish trend. The 100 ema is a huge point of resistance. As we can see here the 100 ema is starting to coincide with the formation of the upperbound of a potential descending triangle.
A descending triangle pattern is a clear continuation pattern which, if confirmed, would suggest that ETH has further to fall before we can look for a solid bottom to start a long-term rally.
I am hoping to see another pump up to test the 100 ema resistance, this is where my target entry is for short positions. Entries on resistance have been very lucrative in the past as the bulls just cannot seem to gather enough strength to break these resistance points.
Suggest entries from 91+ up until 96, looking at movements above 95 as potential signals for bullish momentum and a denial of this pattern.
If this pattern is confirmed and ETH breaks the lower bound then we could expect ETH to test its annual low of $81 and below. A break below 81 would mean we have chewed up support (from May 2017 timeline) and could see ETH cruise on down to 75 or lower.
**This is educational advice, your investment decisions are up to your own discretion and risk tolerance. Do your own research and trade safe.**
Happy trading mates!
Unfortunately it looks like the bulls are just running out of steam to continue pushing a bullish trend. The 100 ema is a huge point of resistance. As we can see here the 100 ema is starting to coincide with the formation of the upperbound of a potential descending triangle.
A descending triangle pattern is a clear continuation pattern which, if confirmed, would suggest that ETH has further to fall before we can look for a solid bottom to start a long-term rally.
I am hoping to see another pump up to test the 100 ema resistance, this is where my target entry is for short positions. Entries on resistance have been very lucrative in the past as the bulls just cannot seem to gather enough strength to break these resistance points.
Suggest entries from 91+ up until 96, looking at movements above 95 as potential signals for bullish momentum and a denial of this pattern.
If this pattern is confirmed and ETH breaks the lower bound then we could expect ETH to test its annual low of $81 and below. A break below 81 would mean we have chewed up support (from May 2017 timeline) and could see ETH cruise on down to 75 or lower.
**This is educational advice, your investment decisions are up to your own discretion and risk tolerance. Do your own research and trade safe.**
Happy trading mates!
Note
I updated the pattern to account for the two wicks we have recently seen. The descending triangle is still valid and the 100 ema is still strong resistance. Short entries above 91 have great potential.
75 is still the target for a breakout from this pattern.
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