ETH has bounced hard off of the recent $450 lows. Looking at the 4hr bar, a very skeptical bull flag formed whereas it had all the characteristics of a bull trap. Indeed that flag hasn't panned out as it tested the $565 level or previous major low and failed to hold it. ETH has nudged into the cloud and has been just hanging around the lower band. Momentum has again faded as it's been dragging sideways making one believe that a big move is in the works. Long term trendlines in the meantime are converging. This presents an interesting juncture as the cloud is now underneath the long term descending trendline and almost acting as an arbiter in ways.
At this moment , I'm still not convinced that ETH will rally and test the upper band of the cloud nor the descending trendline given how momentum has faded. ETH has a lot of work ahead of itself to break higher. At this moment, it looks like a small head shoulders pattern may be emerging out of the failed bullish flag. My personal opinion is that ETH breaks down out of the cloud and drift lower to test the long term ascending trendline around the $440'ish area where there's a lot of support denoted in orange. If ETH breaks the trendline, $350 could be one major support One bullish scenario that may pan out is if ETH continues to drift sideways for the next couple of days as everything converges perhaps giving traders and a like the confidence to push ETH higher perhaps testing $565 and perhaps around the $700.
Conversely, with the sell off in the general world markets, I don't think trading in cryptos are in a risk on environment and heading into an uncertain week ahead, I may be wrong.
At this moment , I'm still not convinced that ETH will rally and test the upper band of the cloud nor the descending trendline given how momentum has faded. ETH has a lot of work ahead of itself to break higher. At this moment, it looks like a small head shoulders pattern may be emerging out of the failed bullish flag. My personal opinion is that ETH breaks down out of the cloud and drift lower to test the long term ascending trendline around the $440'ish area where there's a lot of support denoted in orange. If ETH breaks the trendline, $350 could be one major support One bullish scenario that may pan out is if ETH continues to drift sideways for the next couple of days as everything converges perhaps giving traders and a like the confidence to push ETH higher perhaps testing $565 and perhaps around the $700.
Conversely, with the sell off in the general world markets, I don't think trading in cryptos are in a risk on environment and heading into an uncertain week ahead, I may be wrong.
Note
Watching this break down out of the lower band of the cloud, I believe that if ETH breaks the 510 ish, this would complete a head and shoulders- while also breaking minor upward trend - leading to believe that ETH breaks towards the $450 mark
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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.