Ethereum is being pressured by two opposing forces. The breakout upwards from the blue triangle created a strong support line (the horizontal blue line), but it quickly encountered strong resistance at the level of the dotted blue line. This was the point at which Ethereum broke downwards last November.
Now it has formed a Head & Shoulders pattern which would usually be resolved with a strong move downwards. But in this case, the strong blue support line is resisting this downward move. If ETH moves upwards, in a Head & Shoulders rejection move, it will again encounter resistance at the dotted line.
@Ronnie_Dong, great analysis! Yes, it's definitely getting steeper. Why would you take profit at resistance though? The BIG money is to be made from holding out for the big trends! Sure, the price may reverse at the 188 or 200 resistance levels, but IF it continues, that's where fortunes are to be made. Run your profits, cut your losses.
Ronnie_Dong
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@GlenGoodman, You're absolutely right. I quite agree with you. I just want to give investors a short-term price target, and I certainly hope that prices can continue to rise.
@IgorPorokh, Hi, thanks for checking out my idea! I agree, your ascending triangle could be a valid interpretation of the chart. Obviously the middle of the three upward spikes doesn't reach the top line, but still the whole thing "looks right" and that's what really matters.
But if this is an ascending triangle, then the bias would be bearish, and the chart would be vulnerable to a strong, rapid move downwards. Let's see how the pattern develops over the next few days, I expect it will become clearer soon. :-)
IgorPorokh
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@GlenGoodman, Yes indeed, you need to look! Thank you for your opinion . We will follow each other. I'm sure we can find common points.
GlenGoodman
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@IgorPorokh, Yes definitely! I'll follow you and I look forward to our future discussions. Good to meet you, Igor!