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Pineapple1k
Mar 2, 2019 12:12 AM

ETH bear flag and new leg down? Liquidity hunt to the upside? Short

Description

We had a strong dump on ETH last weekend as an immediate response to BTCs movements.

ETH is trading within an ascending triangle pattern in a bear trend, which is making the (usually bullish) pattern, more neutral when appearing in a bear-trend. It's a good pattern to have at a bottom as it's easy to spot a clear breakout and makes for a rounded bottom.

At the time of writing, ETH is trading in the middle of the triangle between several levels. I am expecting a fakeout to the upside to trap bulls and in short terms get liquidity before having one more leg down to the green zone. In which case I will post yet another analysis on ETH. It's important for ETH to hold the blue trend on the bottom as it's established as a trend in the triangle now. A break of that trend will invalidate the triangle and ETH should expect a momentum shift and more downside.

I will personally short the red zone and put my SL at the red horizontal line.
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