ETH's a funny one right now. It's had a good run and with Alt's popping off all over the place, a big move higher isn't entirely unreasonable.
The daily chart shows a potential rising wedge formation which is typically a bullish pattern with a break to the upside.
Also, price had broken above the upper channel resistance and may be holding.
However...
It feels like the market is running out of steam, and while ETH has some bullish potential, I always look to what BTC is doing before taking a trade like this. Because if BTC tanks, it will take ETH and the rest of the alts tumbling with it. And right now, BTC looks ready for a downside move.
The weekly ETH chart also show that Stoch RSI is overbought as it is on BTC. Also we've had some rejection of the 21 weekly MA and if you discount candle wicks (shown on my weekly chart), then we can see that ETH might also be in a flag/pennant pattern which is typically a continuation of the prevailing trend (i.e. down).
So there could be one more leg up, possibly retesting around 150.
I'm placing an ETH short at 150 with a profit target at around 54.
ETH Daily Chart
The daily chart shows a potential rising wedge formation which is typically a bullish pattern with a break to the upside.
Also, price had broken above the upper channel resistance and may be holding.
However...
It feels like the market is running out of steam, and while ETH has some bullish potential, I always look to what BTC is doing before taking a trade like this. Because if BTC tanks, it will take ETH and the rest of the alts tumbling with it. And right now, BTC looks ready for a downside move.
The weekly ETH chart also show that Stoch RSI is overbought as it is on BTC. Also we've had some rejection of the 21 weekly MA and if you discount candle wicks (shown on my weekly chart), then we can see that ETH might also be in a flag/pennant pattern which is typically a continuation of the prevailing trend (i.e. down).
So there could be one more leg up, possibly retesting around 150.
I'm placing an ETH short at 150 with a profit target at around 54.
ETH Daily Chart
