Ether On A Rag Ready To Make The Bulls Gag. (ETH)
Hi friends! Welcome to this often imitated, but never duplicated, update analysis on Ethereum! Let's get it. Looking at the four hour chart, we can see that ETH appears to be forming a large head and shoudlers pattern, as it remains under the resistance of the 50 EMA (in orange.) For the past two days, Eeth has been confirming the 50 as resistance, and now we're heading lower, in an attempt to complete the formation. Volume is light, and the MACD is drifting sideways, as traders stand clear, sensing possible danger. The 50 EMA is moving down toward the price action, and is likely to remain resistive. Therefore, there is a high probability that it will continue to push ETH lower, until the right shoulder is completed.
You can see that we're also under the 20 EMA (in blue) as ETH finds sustained weakness at the moving averages. Since the 20 EMA is being particularly resistive at the moment, we can use it as a gauge of progress. If ETH get's above it, we can look to the 50 as the next level to put any rallies in check. With that said, I wouldn't trade this until I see a breakdown. Once a confirmed breakdown occurs, for educational purposes only, we could place a short trade with a stop loss just above the neckline. If you wanted to be more conservative, you could do the same thing at the maroon trendline, just below the neckline of the head and shoulders pattern. That would open up a nice downside trade, with mitigated upside risk. It's critical to wait for the break though. On the flip side, if ETH manages to get above the pink downtrend channel, in the coming days, that would be uber bullish. For now, let's watch the action around the 20 and 50 EMAs in this right shoulder. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
You can see that we're also under the 20 EMA (in blue) as ETH finds sustained weakness at the moving averages. Since the 20 EMA is being particularly resistive at the moment, we can use it as a gauge of progress. If ETH get's above it, we can look to the 50 as the next level to put any rallies in check. With that said, I wouldn't trade this until I see a breakdown. Once a confirmed breakdown occurs, for educational purposes only, we could place a short trade with a stop loss just above the neckline. If you wanted to be more conservative, you could do the same thing at the maroon trendline, just below the neckline of the head and shoulders pattern. That would open up a nice downside trade, with mitigated upside risk. It's critical to wait for the break though. On the flip side, if ETH manages to get above the pink downtrend channel, in the coming days, that would be uber bullish. For now, let's watch the action around the 20 and 50 EMAs in this right shoulder. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
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