Hi guys
I have decided to put some attention into etheruim and build up a case study to find a possible good entry point for a buy or sell like we just got in btc for a nice short sell from the top of the drop.
In ethusd we will be looking for a possible buy entry that will push us up to 40 000 or higher.
So let's see what we can see so far.
what do we know about etheruim in terms of price action and candle signals
Price level 2289 we see bullish ingulfing pattern on the 30 may and a piercing line on the 8 June 2021
The two buy signals also show strong bullish rejection indicated by the wick keeping the bullish ingulfing and piercing line patterns up.
This area was a strong support level for etheruim.
On the 29 may we see the rally that setup the bullish ingulfing pattern on the 30th of May.
What makes this level important.
It could be the test level and must be added as secondary support for future breaks below support level of above mentioned bullish signals
Currently
We are seeing a break below this secondary support and pullback.
To first support if we don't see a recovery of support level we could see a drop to lower levels in ethusd.
HEAD. ADN SHOULDER PATTERN
The break of the neck line on a H&S no neck line retest.
Was the bearish movement to strong for a retest of neckline.
What does this indicate to us
Not sure will have to see.
INDICATORS
do indicators support the idea interms of possible recovery or does it support the idea of a retest of break below support.
Let's see what the ichimoku is saying
The ichimoku cloud on the 4h time is currently bearish with to failed attempts to break above it.
Confirming a box range for a high and low of market movement.
The kensan and kujin still in a bullish crossing but under the cloud
Chikou is also under confirm a possible deeper bearish move.
THE Rsi and Bollinger bands are showing that ethusd is oversold on the 4h time frame
This would confirm a buy signal the problem is the neutralization of the bullish ingulfing pattern by the immediate downswing by the bears in current movement.
THE adx does not indicate that we can go long based on the rsi bullish ingulfing and Bollinger bands confirming a buy signal.
In this case we have to take not of the direction of the market
Are we ranging or trending
We are ranging but the bias is currently down so we are short term bearish also
The adx indicate this bearishness while the rsi indicate the bullish upswing because of the box range we are in right now.
We need a confirmation if the range is in control or the trend is in control we don't know That at this point
A break out on the the secondary support to short would mean we are continuing with the short.
So let's keep out eye on what happens as we build up a case for a strong position to enter
I have decided to put some attention into etheruim and build up a case study to find a possible good entry point for a buy or sell like we just got in btc for a nice short sell from the top of the drop.
In ethusd we will be looking for a possible buy entry that will push us up to 40 000 or higher.
So let's see what we can see so far.
what do we know about etheruim in terms of price action and candle signals
Price level 2289 we see bullish ingulfing pattern on the 30 may and a piercing line on the 8 June 2021
The two buy signals also show strong bullish rejection indicated by the wick keeping the bullish ingulfing and piercing line patterns up.
This area was a strong support level for etheruim.
On the 29 may we see the rally that setup the bullish ingulfing pattern on the 30th of May.
What makes this level important.
It could be the test level and must be added as secondary support for future breaks below support level of above mentioned bullish signals
Currently
We are seeing a break below this secondary support and pullback.
To first support if we don't see a recovery of support level we could see a drop to lower levels in ethusd.
HEAD. ADN SHOULDER PATTERN
The break of the neck line on a H&S no neck line retest.
Was the bearish movement to strong for a retest of neckline.
What does this indicate to us
Not sure will have to see.
INDICATORS
do indicators support the idea interms of possible recovery or does it support the idea of a retest of break below support.
Let's see what the ichimoku is saying
The ichimoku cloud on the 4h time is currently bearish with to failed attempts to break above it.
Confirming a box range for a high and low of market movement.
The kensan and kujin still in a bullish crossing but under the cloud
Chikou is also under confirm a possible deeper bearish move.
THE Rsi and Bollinger bands are showing that ethusd is oversold on the 4h time frame
This would confirm a buy signal the problem is the neutralization of the bullish ingulfing pattern by the immediate downswing by the bears in current movement.
THE adx does not indicate that we can go long based on the rsi bullish ingulfing and Bollinger bands confirming a buy signal.
In this case we have to take not of the direction of the market
Are we ranging or trending
We are ranging but the bias is currently down so we are short term bearish also
The adx indicate this bearishness while the rsi indicate the bullish upswing because of the box range we are in right now.
We need a confirmation if the range is in control or the trend is in control we don't know That at this point
A break out on the the secondary support to short would mean we are continuing with the short.
So let's keep out eye on what happens as we build up a case for a strong position to enter