Disclaimer: I am a bitcoin maximalist so i may be biased. Also, the market can stay irrational longer than you can stay solvent. Etc.
Anyway. At first glance the blue breakout looks solid since the candle on breakout has alot of volume. However a candle with alot of volume can also signal that buyers/bulls are getting exhausted.
The price behaved somewhat similar back in may 2016, followed by a big red candle.
The important thing here is to zoom in on smaller time frames to see if a top of sorts is forming. I may update this idea later with such a chart. End of the day if ETH experiences a similar glut marked with the pink channel, it will be interested to see where it finds a bottom. a new low versus the previous glut would be pretty bad. Im following this until end of summer. Have a nice day.
Anyway. At first glance the blue breakout looks solid since the candle on breakout has alot of volume. However a candle with alot of volume can also signal that buyers/bulls are getting exhausted.
The price behaved somewhat similar back in may 2016, followed by a big red candle.
The important thing here is to zoom in on smaller time frames to see if a top of sorts is forming. I may update this idea later with such a chart. End of the day if ETH experiences a similar glut marked with the pink channel, it will be interested to see where it finds a bottom. a new low versus the previous glut would be pretty bad. Im following this until end of summer. Have a nice day.