ETH hitting this massive resistance zone. Time to pullback?
Updated
ETH has been on an absolute TEAR. We got out of our ETH trade a little to soon, but we made a nice chunk of money then, and if you played my $530 breakout out call, you made even more after that. So we had 2 solid trades and made some money. More importantly, we didn't lose anything.
So... Where do we go from here when everything points up? Well, not everything. The daily chart points up, and ALL of the smaller time frames point at being oversold ins some form. ETH/BTC is also hitting this resistance point, please see my analysis on that if you have not:
Take a look at these past 675-700 zones. Look at how solidly they held up. Amazing really. These are huge physiological levels, and I would imagine we would get a pull back or go sideways from here. Look at my last chart where I drew those 2 lines and we bounced in between them basically perfectly. Now, look how much time we have bounced around in this 675-700 the last 3 times. Quite a bit.
We SHOULD get some type of pullback. But, this is crypto and if it breaks above that zone it will be very bullish indeed. (ETH/BTC would also need to be breaking higher to confirm this) If you are still long, this is a good area to take some money off the table and throw a stop on the rest to lock in profits. Right now, it's a no trade for me, but once it breaks this up trendline, a short position could be in play. To be clear, we aren't just looking for it to move sideways to trigger a short position, we need some red candles to confirm it's going to start moving down where it "breaks" the trendline, and it doesn't just saunter by it. We will have to see how the sideways movement forms to determine if it's a bull flag, or simply getting ready for a move lower.
Happy Trading,
-Sherem
Please Smash that like button if my analysis helps!
I am not calling for a complete reversal but maybe it could be? To early? Probably, but I also was too soon in calling the ETH bottom and look how that worked out -
More detail on it -
So... Where do we go from here when everything points up? Well, not everything. The daily chart points up, and ALL of the smaller time frames point at being oversold ins some form. ETH/BTC is also hitting this resistance point, please see my analysis on that if you have not:
Take a look at these past 675-700 zones. Look at how solidly they held up. Amazing really. These are huge physiological levels, and I would imagine we would get a pull back or go sideways from here. Look at my last chart where I drew those 2 lines and we bounced in between them basically perfectly. Now, look how much time we have bounced around in this 675-700 the last 3 times. Quite a bit.
We SHOULD get some type of pullback. But, this is crypto and if it breaks above that zone it will be very bullish indeed. (ETH/BTC would also need to be breaking higher to confirm this) If you are still long, this is a good area to take some money off the table and throw a stop on the rest to lock in profits. Right now, it's a no trade for me, but once it breaks this up trendline, a short position could be in play. To be clear, we aren't just looking for it to move sideways to trigger a short position, we need some red candles to confirm it's going to start moving down where it "breaks" the trendline, and it doesn't just saunter by it. We will have to see how the sideways movement forms to determine if it's a bull flag, or simply getting ready for a move lower.
Happy Trading,
-Sherem
Please Smash that like button if my analysis helps!
I am not calling for a complete reversal but maybe it could be? To early? Probably, but I also was too soon in calling the ETH bottom and look how that worked out -
More detail on it -
Note
Correcting a typo, it's psychological, not physiological. Don't know how that happened...Note
Just to clarify, in my post I reference the range of 675-700 but on the chart you can see the lines give way to a bigger area with 720 at the higher resistance area. It's not surprising if we get spikes up to these levels, or even through them.Note
We are hitting this trendline, if we break it we are going down.Note
Well this all started happening a lot quicker than expected, and it's throwing off signs of really moving down. It broke that short term uptrend line, hit my support line like a champ and bounced off of it. There is minor support at 600, but the 500 area is better. If we get some velocity that's where we are going. And what do you know, my ETH set ups, might start coming into play.
Remember - It's not about how much you make. It's about how much you don't lose. Be quick to take profits and make sure you have a plan in place. I outlined mine for you, but do what you are comfortable with.
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