ETHW ETHEREUM POW Double Top Measured Move $8> Cup & Handle?
Updated
ETHW had a nice run yesterday. It hit most of my targets from my previous chart: however it did not make it to the $18 resistance but this coin is so new, support and resistance levels have not really been established fully yet. So ETHW pumped after testing support and is now coming back down to test that same support. A double top has formed and if support is broken at $10.20 and closes below at least on a 15 minute then a measured move down to $8 is likely with a few stray panic selling wicks down to $7 and $6.50 is very possible. There is declining volume, the MACD is showing bearish divergence, and the RSI is also showing bearish divergence so I am leaning a lot more towards a downside move.
BUT...
There is also a larger formation of a cup and handle pattern. If ETHW manages to close above $14 on the hourly then the cup and handle would have a measured move of around $21 dollars with FOMO wicks to $25 is easily possible.
Yesterday the buy orders were much greater than the sell orders, and now the buy orders have started falling off on Kraken and the sell orders have gone up massively, with decreasing volume. I think this is the local top and a correction is imminent, I think once we break below $10 then we will see a fast drop down because the order books are skimpy.
I still believe that ETHW will take off and get into 3 digits at its macro high during this next bull run.
This is not financial advice this is just my opinions and speculations.
BUT...
There is also a larger formation of a cup and handle pattern. If ETHW manages to close above $14 on the hourly then the cup and handle would have a measured move of around $21 dollars with FOMO wicks to $25 is easily possible.
Yesterday the buy orders were much greater than the sell orders, and now the buy orders have started falling off on Kraken and the sell orders have gone up massively, with decreasing volume. I think this is the local top and a correction is imminent, I think once we break below $10 then we will see a fast drop down because the order books are skimpy.
I still believe that ETHW will take off and get into 3 digits at its macro high during this next bull run.
This is not financial advice this is just my opinions and speculations.
Note
BEARISH DIVERGENCE ON RSINote
BEARISH DIVERGENCE ON MACDNote
Target hit, we spiked down to $7.5 The cup and handle is invalidated. There is some really strong bullish divergence in the RSI and CCI on the 4 hour. ETHW looks about ready to make a nice run up in my opinion. If we don't hold the $7.5 level then the next major support is at around $5 dollar level. This bounce may actually bring us up to $10 is the bullish divergence plays out. At $10 I will come back and re-evaluate.
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