Lets take a look at one of my favorite coins. ETH has done well to recover. I definitely feel that it will reach the 286 levels we were prior the the meltdown that was COVID19. However I write today to inform about a downtrend that I see occurring. Here are some factors that show ETH on a downward slide for now
The Breakdown
- Red Trendline that ETH is currently trying to get past (and seems to have failed). Now that red trendline was caused in part because of outside forces but it still plays a factor. This recovery could very well blast it NOW but I am betting on a later date for that.
- Bullish Purple Channel line is losing steam. In the beginning it his all the top lines and showed indications that its still ascending, but now it has not reached that top ceiling again and is currently trying to break the red trendline I have.
Head and Shoulders pattern forming. Simply put we reached the head portion of this potential H&S. Confirmation would be it failing back to the neckline of 218-228 levels and holding there before it moves up north again and tries for the red trendline again. This pattern is my strongest indicator. If we complete it and go back down to the 218s-228s then I am even more confident that we will form the right shoulder (will it finish the shoulder is another story)
- Volume is decreasing the further up we go trying to break that redline and trying to reach the top channel.
- MACD is moving to cross the way we don't want them to.
- RSI is hitting the blue line that it needs to break for us to get the force to push north. However conventional wisdom tells us that it would put us above 60-70+ levels. Overbought territory. (Granted Crypto sometimes doesn't care and goes 100+)
With that being said, I contrasted the above with the pros for buying in before it explodes
- Position above the Ichimoku cloud means we are in Bull territory
- Above 20 55 200 MA's which means we are ascending and relying on them for support rather than resistance
- We are still in the Bull Price Channel
- There is a Bullish Ascending Triangle around the Bull Price Channel which is giving it a push
After taking all these points into consideration, I went ahead with the stronger points of the downward slide vs us breaking north at least for right now. ETH 2.0 is still on the horizon and that can influence the price as well. Considering that it can be a boost, we can see people start pulling profits in anticipation of a sell off to buy cheap coins and ride the wave of hype back north as we eventually will get back to those $300 levels we had last year {2019}.
I would wait for the 218-228s to get in and ride that while we see how the right shoulder forms.
The Breakdown
- Red Trendline that ETH is currently trying to get past (and seems to have failed). Now that red trendline was caused in part because of outside forces but it still plays a factor. This recovery could very well blast it NOW but I am betting on a later date for that.
- Bullish Purple Channel line is losing steam. In the beginning it his all the top lines and showed indications that its still ascending, but now it has not reached that top ceiling again and is currently trying to break the red trendline I have.
Head and Shoulders pattern forming. Simply put we reached the head portion of this potential H&S. Confirmation would be it failing back to the neckline of 218-228 levels and holding there before it moves up north again and tries for the red trendline again. This pattern is my strongest indicator. If we complete it and go back down to the 218s-228s then I am even more confident that we will form the right shoulder (will it finish the shoulder is another story)
- Volume is decreasing the further up we go trying to break that redline and trying to reach the top channel.
- MACD is moving to cross the way we don't want them to.
- RSI is hitting the blue line that it needs to break for us to get the force to push north. However conventional wisdom tells us that it would put us above 60-70+ levels. Overbought territory. (Granted Crypto sometimes doesn't care and goes 100+)
With that being said, I contrasted the above with the pros for buying in before it explodes
- Position above the Ichimoku cloud means we are in Bull territory
- Above 20 55 200 MA's which means we are ascending and relying on them for support rather than resistance
- We are still in the Bull Price Channel
- There is a Bullish Ascending Triangle around the Bull Price Channel which is giving it a push
After taking all these points into consideration, I went ahead with the stronger points of the downward slide vs us breaking north at least for right now. ETH 2.0 is still on the horizon and that can influence the price as well. Considering that it can be a boost, we can see people start pulling profits in anticipation of a sell off to buy cheap coins and ride the wave of hype back north as we eventually will get back to those $300 levels we had last year {2019}.
I would wait for the 218-228s to get in and ride that while we see how the right shoulder forms.
