ETH: Huge Downside Potential!
Updated
Should we break the $1700 support, we're currently looking at huge downside potential towards the previous lows of $1,400-50, which should give around 20% unleveraged. The reason is: We have been testing the bottom support for quite some while now, which you can see perfectly on the 12H chart:
This will obv. depend on the correlation to Bitcoin: For that scenario to play out, Bitcoin has to be at least neutral, up to bearish.
In the ETH/BTC chart we can see that after some bounce, even here we're grinding at the bottom support and could see huge downside potential, which would propel ETH/USD faster in case of a bear break.
Therefore, the candidate to play this bear break is clearly ETH, *IF* it breaks bearish. This has not happened yet.
Breakout trading depends on the break actually occurring, otherwise it's invalidated.
Check also the last Polkadot analysis: We have been tightening further since the last analysis, and also here a huge break is coming:
This will obv. depend on the correlation to Bitcoin: For that scenario to play out, Bitcoin has to be at least neutral, up to bearish.
In the ETH/BTC chart we can see that after some bounce, even here we're grinding at the bottom support and could see huge downside potential, which would propel ETH/USD faster in case of a bear break.
Therefore, the candidate to play this bear break is clearly ETH, *IF* it breaks bearish. This has not happened yet.
Breakout trading depends on the break actually occurring, otherwise it's invalidated.
Check also the last Polkadot analysis: We have been tightening further since the last analysis, and also here a huge break is coming:
Note
Look at that retest. I love TA.
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