An expansion on my previous post.
A look at some of ethereums recent chart patterns performed.
For now, we await for the diamond pattern to play out and watch for a retest of support or resistance when the breakout occurs.
If it breaks down we will likley experience support at the 0.382 fib.
Otherwise we will likley have resitance at the 0.5 fib which is slightly below the breakouts technical target.
Momentum is starting to shift positive which indicates that the bullish scenario will play out. However, anything can happen.
As always it is important to watch for a retest for the breakout to confirm that it is not a "fake out".
A look at some of ethereums recent chart patterns performed.
For now, we await for the diamond pattern to play out and watch for a retest of support or resistance when the breakout occurs.
If it breaks down we will likley experience support at the 0.382 fib.
Otherwise we will likley have resitance at the 0.5 fib which is slightly below the breakouts technical target.
Momentum is starting to shift positive which indicates that the bullish scenario will play out. However, anything can happen.
As always it is important to watch for a retest for the breakout to confirm that it is not a "fake out".
Comment:
Looking back ETH was close to the target which was just below a fib retracement support level.
It bounced from this support multiple times before continuing up.
It bounced from this support multiple times before continuing up.
It may be possible that people opened positions after the breakup, then their stop-losses triggered once it came down below the breakout point. Sell orders were then triggered and the domino effect continued. But this is a smaller timeframe so it's possible it was simply noise.
As seen in the updated chart we have followed the bearish trend.
As predicted after breaking down support was found at the 0.382.