Dear traders,
A new update for Ethereum for the short term.
Traders, we have almost formed the right shoulder of an inverted head shoulder formation. To validate it we need to break through the neckline. Possibly the neckline will then be tested again by the price of Ethereum but it doesn't have to be. Important: without a break trough the neckline the pattern is not validated and that is also the case for the Bull flag.
Very positive for Ethereum is that the downward trend line has been broken upward and also already retested.
Targets 3745 for Ethereum for the inverse head shoulder.
Interestingly, we also see a Bull flag with a target of 3583 if and only if Ethereum can break it upwards.
Please note traders, this is a hypothesis, Patterns can and do fail regularly but we have a fairly high probability that it will go this way.
Always keep other scenarios open such as a pattern failing as this can produce a sharp counter move.
The RSI indicator is low on a daily basis so it still has considerable room to rise. We are not yet in an oversold situation ;-)
I would take a close look to the downward blue trendline which forms also the lower boundery from the Bull flag. The inverse head and shoulders pattern more particular the right shoulder has still room down and still remains valid as long as we are not going to the lows again.
Good luck and hopefully Ethereum will make up for some of its losses. I think the bull market is not over yet because it is still too early in the year. Again, no guarantee but just an analysis of data.
Disclaimer Traders this is my view no advice to buy or sell. Also always do your own research!
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