We are in a very interesting position. Looking at the 4 hr bar, we see that ETH challenged not only the descending trendline but also the top and bottom of the cloud, breaking it in fashion and ripping higher with very strong momentum. It is clear that we are now in an uptrend but can it continue?
Recently, over the past several 4 hr bars, a symmetrical triangle developed, as momentum has seemed to top out. This in my eyes is good for ETH as this is a good breather after a solid run up. However, on the daily chart, ETH was stopped short of the run up by the top of the cloud, before breaking down and trying again. It seems that the top of the cloud is now the major resistance.
If ETH can break up and out of the symmetrical triangle alongside the top of the cloud with conviction, not only will this confirm a change in trend on the daily bar but also this could be a setup for a complete break out.
On the other hand, if the break out fails to the downside, ETH can very well go ahead and test both the bottom of the cloud as well as the long term ascending trendline to which the cloud is now grinding along.
Recently, over the past several 4 hr bars, a symmetrical triangle developed, as momentum has seemed to top out. This in my eyes is good for ETH as this is a good breather after a solid run up. However, on the daily chart, ETH was stopped short of the run up by the top of the cloud, before breaking down and trying again. It seems that the top of the cloud is now the major resistance.
If ETH can break up and out of the symmetrical triangle alongside the top of the cloud with conviction, not only will this confirm a change in trend on the daily bar but also this could be a setup for a complete break out.
On the other hand, if the break out fails to the downside, ETH can very well go ahead and test both the bottom of the cloud as well as the long term ascending trendline to which the cloud is now grinding along.
Note
Hmmmm TV didn't save an edit, if we do encounter a breakout, ETHUSD will face heavy resistance around the $800 area
Note
Like clockwork, we have a break out, testing the top of the triangle on this current bar. Something to keep an eye out on as it can turn into a false break out as we saw in the middle of February
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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.