As you can see on the chart, ETHUSD has been making new highs but on increasing weakness. Volume has been decline throughout the final stages of this push up. MACD predictably showing negative divergences as a result.
Price currently moving within a well defined channel with the lower trend line showing a lot of touches. I would expect this to reverse down very soon (but i wouldn't be surprised if it tries to make one more high as a bull trap).
Break of lower trend line would be a very obvious indicator.
Trade active
⋅
Short active
Trade closed manually
⋅
Yea, Im not gonna fight this. Position closed manually at a loss but not feeling buying here either. Going to sit on the sidelines to see how it plays out.
Hi Viggy, ETH has hit the 1200$ cap. Do you expect a correction soon or will it raise some more? Thank you for your graphs!
Viggy
⋅
@Charlie_Keij, ETH may take a breather here but given that it broke through that channel, not convincingly, but its still holding near its top and how long the consolidation before this breakout was (5 months). This up move should have a lot more room to run - I would probably look for opportunities to buy
stonedfish
⋅
your chart actually has space for it to continue higher
bought @ 720, 840 and 900
thanks for plotting the channel
Viggy
⋅
@stonedfish, Actually rode up from ~500-ish to just under a 1000. And you are right, I wouldn't be shocked to see a last push to 1100 but any move significantly higher than that would invalidate this hypothesis.
gregor
⋅
Whats your take on this? Should it not have gone down already? Or is it due to low weekend trading that its not moving?
Viggy
⋅
@gregor, I would have liked it to go down already but everything that made up my hypothesis is still intact - rise on declining volume, negative divergences. Another curious thing is that on finex, a lot of the buying has been happening into hidden sell walls. Not sure what it means but I personally don't read it as bullish.
The last (most current) rise is just higher than I would have thought but still within that rising channel.