MrJEB

ETHUSD - SMA 50 Rejections + Descending Trend Line

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
ETH Daily SMA 50 has been rejecting price advance quite consistently. With this many rejections at/or around the 50, and a down-sloping trend line approaching, one has to think that the Bearish response to any price advance beyond the Daily SMA 50 illuminates the path of least resistance to the downside.

Since the surge last Friday, any advance has been met with equal or greater selling pressure, and a lack of Bullish follow up. The pattern that may start to emerge is a Minor Round Top Reversal with the Daily SMA 50, 100 and Downtrend Line set to tackle price action advance at the top right corner of the inverted u-shape.

If Bulls are going to find momentum, the probability of finding it at lower support levels is starting to look more appealing.

An argument can be made that the upward sloping Bullish sentiment is not quite ready to give up ground with a great deal of support coming from the Daily SMA 20, EMA 12, and 26 highlighted here. If price does escape the Bulls, it would first have to do so through EMA 12 and 26 (Something to keep an eye on - Averages on the 4-Hour Time frame have Price Action hugging EMA 12, and 26 as well as SMA 20, and 50 nearby - so far are acting supporters)

  • Daily EMA 12 @ 120.86
  • Daily EMA 26 @ 119.66
  • Daily SMA 20 @ 115.20

One thing is for certain, this one is going to be hard to gauge with the clash of averages coming together. Bears have managed to chip away at least one minor support line, and price action is about to run into decision making volatility .

Good Luck, Traders. May you find yourself on the profitable side of it.

Previous Post on Cluster of Downtrend Lines:
Feb 16
Comment: And of course, this can look however you'd like, depending on which side of the body you are standing on.

Feb 16
Comment:
Feb 16
Comment: ETHLONG Positions Open are increasing:

ETHSHORT Positions Open have declined, with a marginal increase recently:

Long Wicks are concerning on 4H Time Frame, none-the-less a look from CoinBase Exchange:

(Point of Control (POC) - Most Trading in this Visible Range is around $115.50) A turn down would likely find support there:
Feb 16
Comment: It's been a battle to determine what this ones doing.

This trend is strong, but we're in a Bear Market! We have an ascending triangle formation on BITFINEX (looking at 3 other Exchanges seem to follow along after and produce inconsistency with patterns, have less volume, and difference in price).

Looking through some Bear Trap Scenarios and literature with regards to Fibonacci Levels - the original upward move never retraced even close to the .382 level - which would indicate a rather strong trend.

We have an Ascending Triangle Pattern, typically a Bullish Pattern, with 4 or more reaction highs on the 4 Hour Chart, 3 or more reactions to the uptrend line, and declining volume. The duration of the trend is concerning, only being 8 days or so, but the triangle formed after an established Bullish Move (trend).

A very large reversal candle may have slipped some evidence to where this one is going - and it happened on Kraken Exchange, and I happened to be watching the quickness of this reversal (heavy books maybe, who knows).

Kraken Quick Reversal Candle:

BITFINEX: Ascending Triangle Continuation:

Play it smart.
Good Luck, Traders. May you find yourself on the profitable side of it.
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