ETH impulse wave down or still only a correction
Updated
We had a big strong breakout this weekend because of that triangle i showed in the previous analysis. Where getting passed the 146/7 and touching the 148 was a necessity.
Part of the previous analysis:
Anyway, yesterday ETH' seemed to have formed a solid double top pattern and today it was on it's way down but now the market seems to be making another attempt to move up again. I have seen these kind of things many times already and it usually comes down to if the bulls can manage to touch the high again around 148 like the blue line or make a lower high around 146/147 with low volume and then slowly turn down again like the red line. Seems we have a pattern to work with now, the triangle as you can see on the left.
We even had a second push Saturday, showing how strong the rally past month even is. It seemed almost unstoppable even that day, so the size and the way it happened came as a surprise. The Christmas drop happened in a few steps, until it reached the size of Saturday's drop. It took around 12 hours and 3 steps to do it, this crash happened in seconds almost in one big dump.
Anyway, the fact that we saw this dump happen around the same level as the Jan high is a bad sign normally. So normally i would only be looking down now, but i had seen some of the action in the weekend, so i know this dump is due to some people and not the real market intentions. So i remain i bit open minded here at this stage. Despite all this, it is still very likely to see another drop happen before that red zone on the left can break. There is room to move inside of that big bear flag, but it could even drop from the current level, instead of testing the 142 again. What happens after the break of that flag is very important for the coming weeks/months. If we see another big dump with high volume, that it becomes very likely to assume that the market will be headed towards extreme lows. It is also important to see that green support on the left hold, because if that breaks, the mid-term bullish momentum (higher lows) will get in danger as well.
Previous analysis:
Analysis where i described what happend before the dump:
Part of the previous analysis:
Anyway, yesterday ETH' seemed to have formed a solid double top pattern and today it was on it's way down but now the market seems to be making another attempt to move up again. I have seen these kind of things many times already and it usually comes down to if the bulls can manage to touch the high again around 148 like the blue line or make a lower high around 146/147 with low volume and then slowly turn down again like the red line. Seems we have a pattern to work with now, the triangle as you can see on the left.
We even had a second push Saturday, showing how strong the rally past month even is. It seemed almost unstoppable even that day, so the size and the way it happened came as a surprise. The Christmas drop happened in a few steps, until it reached the size of Saturday's drop. It took around 12 hours and 3 steps to do it, this crash happened in seconds almost in one big dump.
Anyway, the fact that we saw this dump happen around the same level as the Jan high is a bad sign normally. So normally i would only be looking down now, but i had seen some of the action in the weekend, so i know this dump is due to some people and not the real market intentions. So i remain i bit open minded here at this stage. Despite all this, it is still very likely to see another drop happen before that red zone on the left can break. There is room to move inside of that big bear flag, but it could even drop from the current level, instead of testing the 142 again. What happens after the break of that flag is very important for the coming weeks/months. If we see another big dump with high volume, that it becomes very likely to assume that the market will be headed towards extreme lows. It is also important to see that green support on the left hold, because if that breaks, the mid-term bullish momentum (higher lows) will get in danger as well.
Previous analysis:
Analysis where i described what happend before the dump:
Note
Seems we have a support zone at 132 now for ETH. If that one breaks, we should see another drop. We already made another good bounce just now, so we could see an attempt to break that red resistance and move up to the 142ish again. Making the 132/142 the new range and 136/7 the middle ground.On the left you can see the volume. Look at how much volume was needed to push the price up and how little volume was needed to made that big dump. This is not a normal picture, but because it happened in the weekend, many traders are not actively trading, making the order book empty compared to weekdays.
Note
ETH just made quite the dump again, after it got rejected just below 140. Now we want to see something like the purple line coming day or 2. The purple line is the one i added, the blue ones were from the analysis, so we can say, that so far things are going as plannen. But now we want to see the 124ish level become a big support level first, preferably seeing 2 tests, not just one coming days.Note
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