Today we will touch upon Ethereum . From a price action stand point it is beginning to look a lot more corrective, despite the side ways trading we have endured for the past month. I believe this continues. Let's check out some charts on Ethereum and I'll show you what I mean.
Follow the Clearest Chart
I have said this a number of times before. Use the clearest chart to get a better picture of the crypto market. Sometimes it'll be Litecoin other time it could be Ethereum .
Above is the 4-hour chart of Ethereum . I posted a similar image on Friday as I suspected a potential sell off but it never came into fruition. I then became for a potential move higher...I was punk'd. The manner in which Ethereum is bouncing off its channel support is concerning.
The chart above illustrates my my concern. On top of a potential head and shoulder top, there is a possible in play. I like to see multiple pattern play that confirm the structural bias.
So hypothetically, if Ethereum were to breakdown here, how deep would the correction be? It may be helpful to view the picture below.
As it stands, this corrective pattern is turning out to be a WXY correction or just a big Flat. I am not sure Ethereum exceeds the low from May 11th by much though. It may just bounce off the 200 . If this occurs, this is in the short term. However, let's get into that if it happens. Short the rallies for now. Bias: Bearish.
As I mentioned above, I will be posting an analysis of the Nasdaq-100 and S&P 500 early in the morning. Stay well and happy trading!