ETH has essentially been ranging between around $1060 and $1300. Those levels happen to coincide with anchored VWAP lines beginning from the 2018 bear low and the first daily candle on this chart from August 8th 2015.
While ranging, ETH seems to have traced out an ascending triangle, which is typically a trend continuation pattern.
Therefore, I believe there is a high probability that we continue to the downside at the conclusion of this triangle.
Standard short target would be about $400 below the break point of the lower line, putting us at ~$700 ETH.
To add to the argument, the 14 period rsi has been trending up throughout this short consolidation phase while price action has failed to conclusively make a substantial higher high, suggesting bearish divergence.
Bollinger band width is as low as it has been when the last two major moves to the downside occurred. Although, I acknowledge that this indicator simply tracks volatility and does not anticipate direction.
Big dump = more volatility and Big pump = more volatility. We'll see what happens...
Assuming we do have another dump, there's relative volume gap in the $630 to $1050 range. Price could fall through here quickly until it finds more substantial support somewhere near $630.
A decisive break above $1300 invalidates this scenario.
Lastly, ETH could also just keep ranging indefinitely and invalidate the triangle that way.
While ranging, ETH seems to have traced out an ascending triangle, which is typically a trend continuation pattern.
Therefore, I believe there is a high probability that we continue to the downside at the conclusion of this triangle.
Standard short target would be about $400 below the break point of the lower line, putting us at ~$700 ETH.
To add to the argument, the 14 period rsi has been trending up throughout this short consolidation phase while price action has failed to conclusively make a substantial higher high, suggesting bearish divergence.
Bollinger band width is as low as it has been when the last two major moves to the downside occurred. Although, I acknowledge that this indicator simply tracks volatility and does not anticipate direction.
Big dump = more volatility and Big pump = more volatility. We'll see what happens...
Assuming we do have another dump, there's relative volume gap in the $630 to $1050 range. Price could fall through here quickly until it finds more substantial support somewhere near $630.
A decisive break above $1300 invalidates this scenario.
Lastly, ETH could also just keep ranging indefinitely and invalidate the triangle that way.
Note
Closer look at the triangle on the 6hrNote
ETH broke to the upside. Overbought on just about everything up to the 8hr. Triangle invalidated unless this is a fakeout.
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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.