Another possible correction underway as 
ETH gets rejected at H1 200EMA; this now establishes neckline around 2650-2600 for the potential double-bottom at hand.
Current price action shows a small triangular pattern forming, with recent support at 2350 solidifying the lower trendline. Note that this is off the average not low. Pattern resistance is marked in red where the bottom line connects off the starting point of this cycle (12/28) and the top connects off the main correction point (1/05).
This presents two possible scenarios:
- A continuation of sideways action between dotted lines would result in a bearish breakout by EOM. This idea is tied off another bottom where expected support is around 2250-2150. Recovery would then need to flip the red resistance zones to complete pattern.
- A continuation of sideways action between 2500 and the lower dotted line would result in a bullish breakout by EOM. This is based off a short-term ascending triangle. It may be a stretch but lines up with the previous prediction.
Also, I want to clarify that the triangular patterns mentioned above are not the same as yesterday's post, which are ascending triangles off the purple support line and specified resistances. These are better illustrated on D1 where the view is more condensed.
ETH gets rejected at H1 200EMA; this now establishes neckline around 2650-2600 for the potential double-bottom at hand.Current price action shows a small triangular pattern forming, with recent support at 2350 solidifying the lower trendline. Note that this is off the average not low. Pattern resistance is marked in red where the bottom line connects off the starting point of this cycle (12/28) and the top connects off the main correction point (1/05).
This presents two possible scenarios:
- A continuation of sideways action between dotted lines would result in a bearish breakout by EOM. This idea is tied off another bottom where expected support is around 2250-2150. Recovery would then need to flip the red resistance zones to complete pattern.
- A continuation of sideways action between 2500 and the lower dotted line would result in a bullish breakout by EOM. This is based off a short-term ascending triangle. It may be a stretch but lines up with the previous prediction.
Also, I want to clarify that the triangular patterns mentioned above are not the same as yesterday's post, which are ascending triangles off the purple support line and specified resistances. These are better illustrated on D1 where the view is more condensed.
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Related publications
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.