This is a follow up on a thread I posted on twitter in early June (same handle). Unfortunately, I cannot share that thread due to rules on sharing links within the idea body. The former thread was focused on the potential direction of the recent triangle formation breakout.
Since losing the triangle formation on the ETH daily chart we have seen a retest, a failure, and now more bloodshed. We have also seen price action barrel through $2k which in my opinion is one of the most important support/resistance zones to be watching. Definitively losing this zone will not be good for the midterm outlook. This would mean losing $2k with volume and force (check) and failing to regain the zone (tbd). If we are to expect bullish continuation its extremely important this zone is regained. When a former major support becomes resistance it can be real tough to regain so we definitely do not want to lose this level.
Also note that we have already seen a daily Death Cross on the BTCUSD pairing but there is still quite a bit of distance between 50MA and 200MA on the ETHUSD pairing. (see my previous post on the death cross for BTC linked below) Is it safe to assume that we will we see something similar for the ETHUSD pairing? If that is the case, then what gets us there? Will we see a strong bearish dip to pull the 50MA in closer to the 200MA or will we see a week or two of consolidation until they catch up with price action? That is all tbd. While on the topic of Moving Averages, I guess it would be important to note that price action has also clipped the 200MA.
At this point I am watching to see if the daily candle can get bought up and close back into the blue 2k zone. If it cant get back up there I will be expecting more pull back to the 1750 range (next weekly low) before a retest of $2k. I am watching several key levels below $2k (1400, 1500,1750) 1400 is the next major support level after $2k with $1500 being a psychological support level. This area is where I will be watching for demand if bulls cannot regain $2k.
Since losing the triangle formation on the ETH daily chart we have seen a retest, a failure, and now more bloodshed. We have also seen price action barrel through $2k which in my opinion is one of the most important support/resistance zones to be watching. Definitively losing this zone will not be good for the midterm outlook. This would mean losing $2k with volume and force (check) and failing to regain the zone (tbd). If we are to expect bullish continuation its extremely important this zone is regained. When a former major support becomes resistance it can be real tough to regain so we definitely do not want to lose this level.
Also note that we have already seen a daily Death Cross on the BTCUSD pairing but there is still quite a bit of distance between 50MA and 200MA on the ETHUSD pairing. (see my previous post on the death cross for BTC linked below) Is it safe to assume that we will we see something similar for the ETHUSD pairing? If that is the case, then what gets us there? Will we see a strong bearish dip to pull the 50MA in closer to the 200MA or will we see a week or two of consolidation until they catch up with price action? That is all tbd. While on the topic of Moving Averages, I guess it would be important to note that price action has also clipped the 200MA.
At this point I am watching to see if the daily candle can get bought up and close back into the blue 2k zone. If it cant get back up there I will be expecting more pull back to the 1750 range (next weekly low) before a retest of $2k. I am watching several key levels below $2k (1400, 1500,1750) 1400 is the next major support level after $2k with $1500 being a psychological support level. This area is where I will be watching for demand if bulls cannot regain $2k.
