After its first major correction, ETH broke down ascending wedge at .78 fib line, then bounced back up from .5 fib line to continue main bull trend. Similar situation developed here: second big correction, ascending wedge broke down at .78 fib line, now meeting resistance at .5 fib line.
A lot of calls to go short right now. Be careful. If resistance is broken here we can confirm the continuation of bear trend. I see the potential for a long myself.
First post! I really enjoy this community. Thanks to all who participate.
Happy trading.
A lot of calls to go short right now. Be careful. If resistance is broken here we can confirm the continuation of bear trend. I see the potential for a long myself.
First post! I really enjoy this community. Thanks to all who participate.
Happy trading.
Comment:
Good evening,
After dip from ascending wedge, ETH appears to have found support at .61 fib line ($338) and is now forming a nice looking pennant. As pennants often break out to continue a trend, I think there is a good possibility ETH will break up here. I do not think the break down from the ascending wedge was strong enough to signal a reversal, as the volume at the break down was lower than the volume of resistance met at the .61 fib line; the MACD seems to have settled at the resistance too suggesting consolidation for the support. However, we can clearly see an inverse head and shoulders reversal at the bottom of the recent big correction.
Now to BTC. As I was writing this idea, I noticed BTC was forming an ascending triangle. About halfway through the post BTC has appeared to have broken up out of that triangle. Watch for volume here to confirm break out. Sometimes false breakouts can occur, and prices can go the other way, so wait for the sign before making trades.
That noted, ETH could also be forming an ascending triangle, which would be stronger support for the continuation of the bull trend. Watch for price to return to $360 mark, as that would distinguish between triangle and pennant.
Either way, look for volume at break outs, and look for a breach at the fib lines. I think heavy volume breaking up over .78 fib line ($362) would be a strong indicator of a bull trend and might be a good spot to open a long. On the other side, heavy volume breaking down .61 fib line ($338) suggests a bear trend and might be a good entry for a short.
As always, don't listen to me, watch for the sign.
Happy trading!
After dip from ascending wedge, ETH appears to have found support at .61 fib line ($338) and is now forming a nice looking pennant. As pennants often break out to continue a trend, I think there is a good possibility ETH will break up here. I do not think the break down from the ascending wedge was strong enough to signal a reversal, as the volume at the break down was lower than the volume of resistance met at the .61 fib line; the MACD seems to have settled at the resistance too suggesting consolidation for the support. However, we can clearly see an inverse head and shoulders reversal at the bottom of the recent big correction.
Now to BTC. As I was writing this idea, I noticed BTC was forming an ascending triangle. About halfway through the post BTC has appeared to have broken up out of that triangle. Watch for volume here to confirm break out. Sometimes false breakouts can occur, and prices can go the other way, so wait for the sign before making trades.
That noted, ETH could also be forming an ascending triangle, which would be stronger support for the continuation of the bull trend. Watch for price to return to $360 mark, as that would distinguish between triangle and pennant.
Either way, look for volume at break outs, and look for a breach at the fib lines. I think heavy volume breaking up over .78 fib line ($362) would be a strong indicator of a bull trend and might be a good spot to open a long. On the other side, heavy volume breaking down .61 fib line ($338) suggests a bear trend and might be a good entry for a short.
As always, don't listen to me, watch for the sign.
Happy trading!
BTC paints a similar picture: MACD has leveled out around zero, RSI sits around 49, and volume is relatively low.
Again, be careful shorting here. If we see heavy volume breaking down ETH price at $330 we will have a strong signal to sell. Wait for the sign.
I think ETH looks primed to continue its uptrend, but as most of you know, ETHs path often follows the direction of BTC. Correct me if I'm mistaken, but BTC will likely hard-fork on August 1st. Uncertainty over BTC price direction looms over that date. I won't speculate over possible scenarios here, but I bring it up because that date is over a month away, which is a long time in crypto-time. In the mean time I believe investors will keep pumping the crypto-markets, and that we should continue to see gains. If there is any time for FUD, it will be August 1st; for now follow the markets and trade smart.
Happy trading.