Quick update on ETH - Bear flag?
As I mentioned in my previous update, it looks like ETH is trading in a bear flag. It looked somewhat decent after the bounce from 2.5k yesterday but now it's stalling and moving slow, which is typical for a bear flag. Still think we will see one more push towards 3k later this week but it could also drop down from here.
Anyway, assuming we are in a bear flag one should wait for either of these scenarios:
- Break of the bear flag and wait for a bottom, which should be around 2.2k in this case
- Wait for a final touch of upper resistance and go short
You really don't want to trade the price action within a bear flag, as it's completely random - And you don't want to short the breakdown, as it just could move back inside for a stop hunt.
So either trying to catch a bottom AFTER breakdown or wait for the upper bounds and go short, which should be around 3k.
Stay safe!
Anyway, assuming we are in a bear flag one should wait for either of these scenarios:
- Break of the bear flag and wait for a bottom, which should be around 2.2k in this case
- Wait for a final touch of upper resistance and go short
You really don't want to trade the price action within a bear flag, as it's completely random - And you don't want to short the breakdown, as it just could move back inside for a stop hunt.
So either trying to catch a bottom AFTER breakdown or wait for the upper bounds and go short, which should be around 3k.
Stay safe!
Note
So, it broke below the support, but no dump yet. Overall market looks weak past 24h or so. Not sure, target of this bear flag would be around ~2.2k, so better wait if it gets there. Note
Looks like we have a breakdown. Target of 2.2k still valid. Note
Still nothing... just moving sideways. No-trade-zone for me.
Note
So, ETH broke down of that flag but no real dump/continuation and is already back above 2.7k which is not too bad.
Will write a new ETH analysis as this could be the start of a much bigger move :)
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