Ethereum has been in a long term downtrend over the past few weeks since hitting its all time high of $400-420 reaching a bottom of about $140.
It has since seen a recovery into the $200 range and hovered right around there. Scrolling out to the 4h and 1D timeframes you see signs of a divergence and potential bull-trend forming.
Looking @ the 4h, we see volume showing bullish divergence, increasing buy pressure and a pennant with a pretty cut and clear example of an inverse head and shoulders. When the neckline was broken we had a large breakout from $205 all the way to $235.
This could also be the start of a bull-flag, with the breakout to $235 forming the flag-pole and this current retrace and consolidation @ $215-225 forming the flag portion. To confirm this, we look for a bounce off of $210-220 area with a clear confirmation of breakout above $235.
Riskier traders can look to open early long positions between $210-220 for larger returns, or more risk averse traders can wait for the confirmation signal of the $235 breakout before opening a safer long position. I would place stop losses around 205 or just below 200 as that should be a strong longer term support below the neckline breakout.
Happy Trading!
It has since seen a recovery into the $200 range and hovered right around there. Scrolling out to the 4h and 1D timeframes you see signs of a divergence and potential bull-trend forming.
Looking @ the 4h, we see volume showing bullish divergence, increasing buy pressure and a pennant with a pretty cut and clear example of an inverse head and shoulders. When the neckline was broken we had a large breakout from $205 all the way to $235.
This could also be the start of a bull-flag, with the breakout to $235 forming the flag-pole and this current retrace and consolidation @ $215-225 forming the flag portion. To confirm this, we look for a bounce off of $210-220 area with a clear confirmation of breakout above $235.
Riskier traders can look to open early long positions between $210-220 for larger returns, or more risk averse traders can wait for the confirmation signal of the $235 breakout before opening a safer long position. I would place stop losses around 205 or just below 200 as that should be a strong longer term support below the neckline breakout.
Happy Trading!
Trade active
s3.amazonaws.com/tradingview/snapshots/i/I4vqtcnb.pngOur first wave up has begun! The red trendlines extend from the July 18th high of $270 on Kraken to the last high of $235. This is the key level we are looking to touch (and eventually break). My first target will be looking to exit around $233 with a stop at or below $215. If that trade complete successfully I will be looking to reload for another leg up.
Happy Trading!
Note
On the 1-Day chart we can see the upside potential a little better. Longer-term I am looking to ride this bull-trend up to the $300-320 area.s3.amazonaws.com/tradingview/snapshots/o/Ot4Tp0RP.png
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.