Dear friends,
Here we see the daily chart of Etherium. When in doubt, it is always good to zoom out to get a better overview without noise
It is very important for Ethereum that the lower trendline holds. If Ethereum closes below this trend line with a close for the day we will very quickly see 1500 and 1200 USD in the picture. I would only trigger a stop below the trendline and then only with a closed day candle. Otherwise you run the risk of being stopped out intraday, after which the price goes like a rocket in the other direction, without the trader's knowledge.
We also see on this chart a huge head-shoulder formation but the price has NOT broken through the neckline. So no bearish scenario yet! This will only start when the price closes below the neckline and not before!
By the way, this head shoulder pattern can continue until the end of 2021. If the price breaks through the +3000 level, it will quickly return to the old top.
Then there is the orange bullish wedge targeting the old top! This Bullish wedge is actually the failing head shoulder formation we see here.
Targets:
2281
2894
The orange trend lines of the wedge and the descending trend channel. These are dynamic because the value is falling every day as these lines are directed downwards.
Downside risk is low (you can place the stop tight under the neckline) as we are very close to the outer limit of the rising trend channel / neckline of the main shoulder formation.
Dear friends, please share your thoughts and idea's below. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer Traders this is my view, no advice to buy or sell. Also always do your own research!
--->> Traders please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚