ETH Attempting to test the primary Trendline! QUICK ANALYSIS
Updated
Short ETH analysis:
We are nearing an inflection point. We can try and get some idea of what BTC is doing by digging deeper into the top altcoins. ETH is one of those top tokens/coins.
Adjustments from my previous ETH analysis:
I adjusted the primary Orange dotted trendline to reflect the new price distribution.
I organized my green overhead trendlines to better coincide with the current price distribution.
My charting has a volume bias.
I have added high volume nodes rectangles to show strong areas support of the resistance.
The highest volume node is at the POC, $108.12. please note that the POC can change when adding more, or fewer data to the chart picture area.
The high-volume node above the current price action is right at $150.00.
Conclusion:
I have a price action volatility move prediction of February 26 to Feb 28 based on historical data I outlined in a previous analysis. Upon reviewing this chart in-depth, we can see how difficult it has been to achieve price action above $145.00 in the last 20 or so candles. We keep getting knocked back whenever we poke up through the second from the top high-value node. I am concerned that the current price action is turning bearish because of the reasons stated above. We also have a long red candle where the price action could not rebound 50% of that candle, so if we are in a continuation pattern based off that candle, the price could have a bearish bias. We are above the primary orange dotted trendline, it is difficult to make a high probability call on direction until we either breach the orange dotted trendline or move above $145.00.
Trading Idea:
I don't feel it’s a bad idea to have some exposure to ETH. I always recommend to my readers to DOLLAR COST AVERAGE in on the way up or the way down. If you have a set amount to invest, I would consider 5-10 percent of that amount around these levels and try to get an entry price as close to the primary trendline as you feel you can get.
If we break down, I would give consideration to the .50 fib level ($135.10) and the .618 fib level ($127.30) for support with an extreme break down support at the lowest high-volume node demonstrated in the third from the top rectangle on the chart.
For my readers: I will state I have a bearish bias until I can determine the primary trendline will hold. I also feel that ETH wants to decouple from BTC for a short time.
If you want to understand how I chart using Volume indicators as my primary method for analysis, follow Biff on TV. Follow me on Twitter where you can communicate with me directly and become part of my community of excellent chartist and great people! If there is any reason, I enjoy charting for free it’s because of the wonderful people who follow me on twitter. I will always do my best to give clear and concise analysis to the reader. I cannot trade for you but give the reader insight into how someone with nearly 30 years breaks down any product for analysis. I nearly always explain why I use the indicators on a chart and why the combination of indicators works well to validate my written analysis.
If you think Biff can help you chart better, give you insight into an interesting trading technique, follow me, you will not regret it. Give me a thumbs up even though this is not my standard chart review. I am fighting against time because we are closing in on the primary trendline and developing an inverse H&S price distribution on the 4hr as I type this.
We are nearing an inflection point. We can try and get some idea of what BTC is doing by digging deeper into the top altcoins. ETH is one of those top tokens/coins.
Adjustments from my previous ETH analysis:
I adjusted the primary Orange dotted trendline to reflect the new price distribution.
I organized my green overhead trendlines to better coincide with the current price distribution.
My charting has a volume bias.
I have added high volume nodes rectangles to show strong areas support of the resistance.
The highest volume node is at the POC, $108.12. please note that the POC can change when adding more, or fewer data to the chart picture area.
The high-volume node above the current price action is right at $150.00.
Conclusion:
I have a price action volatility move prediction of February 26 to Feb 28 based on historical data I outlined in a previous analysis. Upon reviewing this chart in-depth, we can see how difficult it has been to achieve price action above $145.00 in the last 20 or so candles. We keep getting knocked back whenever we poke up through the second from the top high-value node. I am concerned that the current price action is turning bearish because of the reasons stated above. We also have a long red candle where the price action could not rebound 50% of that candle, so if we are in a continuation pattern based off that candle, the price could have a bearish bias. We are above the primary orange dotted trendline, it is difficult to make a high probability call on direction until we either breach the orange dotted trendline or move above $145.00.
Trading Idea:
I don't feel it’s a bad idea to have some exposure to ETH. I always recommend to my readers to DOLLAR COST AVERAGE in on the way up or the way down. If you have a set amount to invest, I would consider 5-10 percent of that amount around these levels and try to get an entry price as close to the primary trendline as you feel you can get.
If we break down, I would give consideration to the .50 fib level ($135.10) and the .618 fib level ($127.30) for support with an extreme break down support at the lowest high-volume node demonstrated in the third from the top rectangle on the chart.
For my readers: I will state I have a bearish bias until I can determine the primary trendline will hold. I also feel that ETH wants to decouple from BTC for a short time.
If you want to understand how I chart using Volume indicators as my primary method for analysis, follow Biff on TV. Follow me on Twitter where you can communicate with me directly and become part of my community of excellent chartist and great people! If there is any reason, I enjoy charting for free it’s because of the wonderful people who follow me on twitter. I will always do my best to give clear and concise analysis to the reader. I cannot trade for you but give the reader insight into how someone with nearly 30 years breaks down any product for analysis. I nearly always explain why I use the indicators on a chart and why the combination of indicators works well to validate my written analysis.
If you think Biff can help you chart better, give you insight into an interesting trading technique, follow me, you will not regret it. Give me a thumbs up even though this is not my standard chart review. I am fighting against time because we are closing in on the primary trendline and developing an inverse H&S price distribution on the 4hr as I type this.
Note
ERRATA:I previously stated we were forming an inverse H&S pattern. this is incorrect. We have broken the primary trendline indicated on my chart. A fade towards the .50 fib price level is now highly probable. I am also noting at the time of this writing that BTC is not moving with ETH. I am not sure why ETH has not made a follow through move since the last nice bull run, but this could very well be a shakeout so big money can get seated at the table before the fork is announced. I am just speculating. Good luck, I will be on ETH watch all day!
Note
The Constantinople upgrade will implement the following Ethereum Improvement Proposals (EIPs).EIP 145: Bitwise shifting instructions in the Ethereum Virtual Machine – this EIP will make it cheaper and easier to do certain transactions on the network through the EVM
EIP 1014: Skinny CREATE2 – will allow you to interact with addresses that have not yet been created
EIP 1052: EXTCODEHASH opcode – reduces the gas needed for certain transactions
EIP 1234: Constantinople Difficulty Bomb Delay and Block Reward adjustment – this EIP will delay the difficulty bomb for another 12 months and reduce the block rewards in preparation for the eventual implementation of a Proof of Stake algorithm
The St. Petersburg portion of the upgrade removes EIP 1283 from all test networks. This EIP was the one that had been identified as has having security vulnerabilities. EIP 1283 introduced cheaper gas costs for STORE operations on the network. The upgrade to remove EIP 1283 will be carried out at the same time as the Constantinople portion adding the 4 aforementioned EIPs.
ethereumworldnews.com/binance-confirms-its-support-for-ethereums-eth-constantinople-st-petersburg-upgrade/
Note
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