Hi friends! Let's take a look at Ethereum. As you can see, here on the four hour chart, it has maintained the weird head and shoulders pattern, just as I said it would. ETH was rejected for a third time at the high, and has since turned lower. Notice how it has taken out the 20 EMA (in blue.) That has been a very supportive level on this uptrend, but we can see that it is being violated with increasing frequency. That is a signal of a short term change in momentum, and that is confirmed by the falling MACD. Comparing the MACD to the chart, we can see that a negative divergence was formed, which I spoke about in previous posts. A negative divergence is when price is making higher highs, while momentum is making lower highs. It is an indication of an unsustainable trend, because of decreased underlying momentum. As such, corrective moves, often come after negative divergences. We can see that the current price action corresponds perfectly to that. Beyond losing the 20 EMA, we can see that the 50 EMA (in orange) is also being violated. Ripple is likely to continue to fall, to the bottom of the green parallel channel. However, if the selloff starts to accelerate, I don't think that will hold. I will keep you posted as the chart develops.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Great analysis! It looks like ETH will continue it's bearish momentum.
PNUTTY
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Another good graph by poopy.
This correction was in the books, though it would seem that it's being hastened by market conditions. At this rate it will not only have the ABC correction but potentially drop way more.
Short position traders will love this!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
MagicPoopCannon
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@PNUTTY, Thanks for the comment PNUTTY. I hope you're doing well out there buddy. I think that rhymed. =D