ETH Trendline Break / Head and Shoulders Warning!
Updated
In the midterm, it looks like ETH is completing its head and shoulders pattern. The One Hour MACD is very bearish, although volume is weak.
In the longterm, the trendline of death has still not convincingly been breached, and if Ether falls below it once more, expect more selling ahead before it gets better. As I have stated before, my next large bounce zone is around the 200EMA if it does continue to fall.
We could always bounce around here and make it back above the green trendline, but I would not be bullish until we get over the 50EMA and the 910 level.
This one's short because ive gotta run... let me know if I missed anything!
Currently no position.
Disclaimer: This is not investment advice. I am just a dude on a website, not an investment adviser.
In the longterm, the trendline of death has still not convincingly been breached, and if Ether falls below it once more, expect more selling ahead before it gets better. As I have stated before, my next large bounce zone is around the 200EMA if it does continue to fall.
We could always bounce around here and make it back above the green trendline, but I would not be bullish until we get over the 50EMA and the 910 level.
This one's short because ive gotta run... let me know if I missed anything!
Currently no position.
Disclaimer: This is not investment advice. I am just a dude on a website, not an investment adviser.
Note
Update: Head and Shoulders looking likely. As the price has dropped below the current support level, MACD shows no great divergence in either direction, and volume is staying low and slightly bearish, I would stay out of ETH for the moment.
Next major support is 780-800. If it falls back into the red trendline (on the original chart), that would be majorly bearish.
Personally, I will see how it comes out of this head and shoulders before buying anything. If it continues to fall, I want to see how it reacts to both the 780-800 level and the bearish red trendline.
In general, I would not buy Ether until it proves that it can successfully stay above the 50EMA, hopefully using it as support a couple of times for confirmation. When that happens, I plan to trade by buying around the 50EMA on pullbacks, with stop loss a small amount under the 50EMA. Thats the future though, for now we are bearish!
Disclaimer: This is not investment advice, i'm not an investment advisor, i'm just a dude with internet access, who gets some right and some wrong. These are mostly to help me keep my ideas clear.
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.