Ethereum Compressing, Major Move Forming. (ETH)
Updated
Symbol: ETHUSD
Sector: Cryptocurrency
Hello, let's analyze the weekly movement on ethereum.
With highs around $1000 average and the next impulse structure pump in 2019 with a high around $300 average can show us what the major downward level of Resistance that was set to be broke in 2020.
We know that support and Resistance tend to play a role where they can flip and act as the opposite of what they represented throughout history.
Late 2019 to early 2020 was the play that broke the major Resistance level for a breakout but still managed to stay compressed in this sideways pennant range.
After it broke out it retested for support on old Resistance which correlated with the previous 2 levels of support. (Circled in green)
We are now getting a squeeze in the pennant and the black triangle shows you the current range to play.
I believe a breakout of this range with cause a big rally.
But we have to remember that patterns don't always go as planned.
How can we know if the breakout will be a strong long term hold?
Based off of our crossover strategy when we see the green bricks form for a crossover of the black offset average we want to look for a longterm hold. If it were to cross over to the downside we would look to exit and play next support.
Currently the weekly sits roughly in a halfway point on the current range. Brick is above the black line so we continue to hold.
If we look at the timeline we could see this range play throughout 2020.
Altcoins are beyond exhausted and btc seems to be holding up.
I think the bear market is approaching a point of bull cycle.
I was not active much last week because I was out of town. Now it's time to get back into the normal trading routine. I hope your trades are going well and that you are having some awesome trades come your way! 😁
Anyways, catch you in the next post!
Sector: Cryptocurrency
Hello, let's analyze the weekly movement on ethereum.
With highs around $1000 average and the next impulse structure pump in 2019 with a high around $300 average can show us what the major downward level of Resistance that was set to be broke in 2020.
We know that support and Resistance tend to play a role where they can flip and act as the opposite of what they represented throughout history.
Late 2019 to early 2020 was the play that broke the major Resistance level for a breakout but still managed to stay compressed in this sideways pennant range.
After it broke out it retested for support on old Resistance which correlated with the previous 2 levels of support. (Circled in green)
We are now getting a squeeze in the pennant and the black triangle shows you the current range to play.
I believe a breakout of this range with cause a big rally.
But we have to remember that patterns don't always go as planned.
How can we know if the breakout will be a strong long term hold?
Based off of our crossover strategy when we see the green bricks form for a crossover of the black offset average we want to look for a longterm hold. If it were to cross over to the downside we would look to exit and play next support.
Currently the weekly sits roughly in a halfway point on the current range. Brick is above the black line so we continue to hold.
If we look at the timeline we could see this range play throughout 2020.
Altcoins are beyond exhausted and btc seems to be holding up.
I think the bear market is approaching a point of bull cycle.
I was not active much last week because I was out of town. Now it's time to get back into the normal trading routine. I hope your trades are going well and that you are having some awesome trades come your way! 😁
Anyways, catch you in the next post!
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