In this ETHUSD
chart based on the Bitmex perpetual swap we can see ETH has been moving in a clear channel for months now. After being rejected at R1, price has trended to test the channel support and forcing it to make a decision. IF ETH confirms a break below the channel support, I am looking to short to the lower blue rectangle
(R2) acting as price resistance/support. If we bounce from the channel support I will be watching to see how it reacts with that overhead blue rectangle
resistance (R1) and if we can break above it to find the top of the current channel.
Interestingly, the 55EMA and the 100EMA seem to be providing some sort of support for the moment, we will see how that turns out. The RSI
seem to be indicating a short-term downward pressure, but without more confirmation a prudent investor would wait to confirm a break-out.