Hi friends! What's going on in Ethereum!? Let's take a look. If you remember from my last ETH post, I had a bear flag up on the chart, and I was expecting further downside. However, new developments have changed the the forecast, in a way that is a bit more bullish. As I was looking at the chart, I noticed that the recent price action has a weird cup and handle type shape, with a clear breakout happening on the top side. Taking a closer look at the chart, we can see tat ETH broke above the resistance level of the cup and handle formation (black trendline,) and above the 50 EMA (in orange) simultaneously. Then, there was a small red candle, where it quickly turned around and confirmed that level as new support. From there, ETH has started to slowly lift off. It's like Ethereum is a stealth ninja right now — just quietly tiptoeing higher, while most traders chill on the sideline. Speaking of chilling on the sideline, volume continues to decline, showing that traders are sitting out at an increasing rate. This isn't very supportive for a bullish continuation higher, because decreasing volume is generally a sign of exhaustion. However, the MACD is telling another story. After producing a bullish crossover on the 18th, it's been steadily expanding higher. Also, the MACD just crossed above the zero line, which is a short-term buy signal. Perhaps the bulls will wake up, after these covert developments slap them in the face. If they don't, the bears will come through to drag it down again. As you can see, I've posted a measurement on the chart, for a cup and handle target. Typically, when traders are trying to determine a target for a particular formation, they will take a measurement, and add or subtract that measurement from the breakout point. In the case of this possible cup and handle, I've measured the deepest point of the cup, and added the measurement to the breakout level. If that plays out, Eeth could post a new all time high. Don't get too excited yet though. Before I become completely comfortable with that possibility, I would like to see Eeth get back into the rising parallel channel. If we do that, it's game-on for this bad boy — or girl. =D Keep your eyes on that channel ladies and gents.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
-Magic-