ETH-USD Bearish Descending Triangle Forming - Short Potential
I have been trading ETH short positions for the past two weeks with varying degrees of success. I had a few early entries which got washed due to some of the higher leverage I've been utilizing in my trades.
Last night I capitalized on the pattern I saw forming and entered into another short postion at $223.50/ETH, when the price broke through the lower bounds of the bear flag I had charted off of the large dip from the $280 range down to $170 territory that took place between September 5th and September 12th.
This was a quick in and out trade. I exited at $217.50/ETH when I saw support forming and the potential denial of the breakout I had anticipated. This resulted in a simple 2.6% gain, which at the 25x leverage I was utilizing yielded a nice 60%+ trade in a 4 hour window.
Unfortunately the breakout did not extend as far as I had initially hoped. This has caused me to reevaluate my position and analysis, as such I don't have any open positions at this time but I am looking for another entry. This is a continuation of my past bear flag ideas. I believe the viability of that pattern has broken down for the time being as ETH already crossed the lower bounds and while it did decline it did not fall as much as I anticipated.
Right now I am seeing another bearish pattern forming, a descending triangle from the September 11th-12th lows and the near $250 range from September 21st - 22nd. This pattern has formed two other times in the past two months, as you can see on the chart points and . After each of these patterns were fully confirmed the trend continued downward with strong profit potential on the short side.
As I have learned over the past few weeks, being patient and entering the breakout has been much more profitable for me than trying to enter early to maximize profit. I am waiting for this most recently formed triangle , to breakout below the lower bound. I will be looking for an entry right before or shortly after a break of the $217.50/ETH resistance I have seen form multiple times. I believe that a breakout past that price point could result in ETH sliding near or below $200 again. I will not enter until I see this breakout being confirmed.
Any thoughts, criticism or support, are all welcome. Let me know what you think about my analysis, do you agree or disagree?
Last night I capitalized on the pattern I saw forming and entered into another short postion at $223.50/ETH, when the price broke through the lower bounds of the bear flag I had charted off of the large dip from the $280 range down to $170 territory that took place between September 5th and September 12th.
This was a quick in and out trade. I exited at $217.50/ETH when I saw support forming and the potential denial of the breakout I had anticipated. This resulted in a simple 2.6% gain, which at the 25x leverage I was utilizing yielded a nice 60%+ trade in a 4 hour window.
Unfortunately the breakout did not extend as far as I had initially hoped. This has caused me to reevaluate my position and analysis, as such I don't have any open positions at this time but I am looking for another entry. This is a continuation of my past bear flag ideas. I believe the viability of that pattern has broken down for the time being as ETH already crossed the lower bounds and while it did decline it did not fall as much as I anticipated.
Right now I am seeing another bearish pattern forming, a descending triangle from the September 11th-12th lows and the near $250 range from September 21st - 22nd. This pattern has formed two other times in the past two months, as you can see on the chart points and . After each of these patterns were fully confirmed the trend continued downward with strong profit potential on the short side.
As I have learned over the past few weeks, being patient and entering the breakout has been much more profitable for me than trying to enter early to maximize profit. I am waiting for this most recently formed triangle , to breakout below the lower bound. I will be looking for an entry right before or shortly after a break of the $217.50/ETH resistance I have seen form multiple times. I believe that a breakout past that price point could result in ETH sliding near or below $200 again. I will not enter until I see this breakout being confirmed.
Any thoughts, criticism or support, are all welcome. Let me know what you think about my analysis, do you agree or disagree?
Trade active:
I am pretty happy with this call right now, even though I was a little early. It is nice to see the pattern playing out, we will see if this is the dump I am expecting but it was definitely overdue.
Here is an updated chart of the descending triangle, if extended out it traces the previous pattern almost exactly.
I am actively trading and have been for the past hour or so. Unfortunately I missed the entry, by the time I saw all my scheduled alerts it was two minutes too late. An incredibly fast drop. Where it goes from here will definitely have a big psychological effect on both bulls and bears, either seeing a large upside or the beginning of a collapse.
I've been trading derivatives with 25x leverage. I entered a position at 203.00 and exited at 197.50, the derivative is trading at a somewhat large discount to ETH.
Currently ETH is ~205, and I have a position opened again at 201 and the derivatives are trading near 201.50.
Let's see how this plays out.
Here is an updated chart of the descending triangle, if extended out it traces the previous pattern almost exactly.
I am actively trading and have been for the past hour or so. Unfortunately I missed the entry, by the time I saw all my scheduled alerts it was two minutes too late. An incredibly fast drop. Where it goes from here will definitely have a big psychological effect on both bulls and bears, either seeing a large upside or the beginning of a collapse.
I've been trading derivatives with 25x leverage. I entered a position at 203.00 and exited at 197.50, the derivative is trading at a somewhat large discount to ETH.
Currently ETH is ~205, and I have a position opened again at 201 and the derivatives are trading near 201.50.
Let's see how this plays out.
Trade closed manually:
I stopped trading this pattern on the 10th after taking my gains and seeing ETH stabilize. However, the trend continued and I was able to get another position in and out yesterday (Oct. 11th).
I was able to get entries at $197.50/ETH (derivatives again) and closed along the way down all the way to $187/ETH. This was also a very quick trade, I only had a position open for less than 30 minutes. I netted 5.32% on this movement, my past trades were at 25 x leverage, this one was only at 15 x which means I only got 79.7% on the trade. Could've had more on a higher leverage.
I am now waiting for another entry point to present itself;
I was able to get entries at $197.50/ETH (derivatives again) and closed along the way down all the way to $187/ETH. This was also a very quick trade, I only had a position open for less than 30 minutes. I netted 5.32% on this movement, my past trades were at 25 x leverage, this one was only at 15 x which means I only got 79.7% on the trade. Could've had more on a higher leverage.
I am now waiting for another entry point to present itself;
