Ethena Update (Inverted Head & Shoulders Pattern Updated)This chart very interesting to update since we looked at it recently. On the chart, I drew the inverted Head & Shoulders pattern. On top of it is line depicting the neckline. We can see how the break above the pattern resulted in a rejection pushing prices below the neckline; bearish.
The RSI is showing some bearish divergence in the short-term and the current candle, which still early, is showing exhaustion.
Now, in the previous trade-idea I showed two scenarios (you can find it by visiting my profile using the search filter to find this pair):
1) Staying above the iH&S patterns would produce a bullish jump right away.
2) Moving below, as it is now, would activate the second scenario with the red arrow follow by the blue one.
I added a second resistance line (green) that would need to break for Ethena (ENAUSDT) to move higher and grow. Based on current market conditions, it seems we have the second scenario, a drop before additional growth.
Patience is key.
There will be strong and clear signals when the bottom is in.
Namaste.
