ETH/USD - Possible head and shoulders formingEthereum has had an incredible run since it bottomed out back in April. It is now correcting, with a possible head and shoulders structure almost completed.
A head and shoulders is a trend reversal pattern. The uptrend, partially denoted by the yellow trend line, culminates in the head region, after which it begins a downtrend.
The conventional way of trading the H&S pattern is to take the price difference between the apex of the head to the neckline, and subtract it from the price of the neckline. Coincidentally, this price target falls right on the .786 fib retracement level. It is here where we could possibly see the end of ETH's retracement.
This would be a perfect H&S if it had the more typical volume signature associated with H&S. Because of this, another price target to keep an eye on is 660, which is the .382 fib retracement level, a strong horizontal resistance and the potential bottom of the right shoulder
not financial advice
