Multi-Month Ascending Triangle Coming to an End
Much like Bitcoin during the 2018/2019 bottom, this Ethereum consolidation has repeatedly formed bullish reversal chart patterns on lower timeframes. Together, these patterns have also drawn a large ascending triangle which has had a series of higher lows and a horizontal resistance zone. Volume during this consolidation has also declined throughout, with the exception of event driven volume around the FTX debacle.
Entry: breakout trade above the horizontal resistance (>2k), on volume
Exit: measured move and fib extensions based on depth of pattern (2.7k-3.0k)
Stoploss: any lower lows below the current local low (<$1630)
Entry & Exit levels can also be simplified using the yearly pivots
Entry = > nearest pivot
Exit = R1 Pivot
Additionally, high timeframe Ichimoku Cloud shows a pending Kumo breakout possible over the next month. The Kijun also acts as a stop loss level for any active long.
Entry: breakout trade above the horizontal resistance (>2k), on volume
Exit: measured move and fib extensions based on depth of pattern (2.7k-3.0k)
Stoploss: any lower lows below the current local low (<$1630)
Entry & Exit levels can also be simplified using the yearly pivots
Entry = > nearest pivot
Exit = R1 Pivot
Additionally, high timeframe Ichimoku Cloud shows a pending Kumo breakout possible over the next month. The Kijun also acts as a stop loss level for any active long.
Note
Other non-technical factors to consider:1. regulatory attitudes toward ETH and staking in the US
2. institutional tradfi product approvals post-ETH regulatory clarity
3. exchange outflows and staked ETH inflows
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.