ETH/USD just completed a beautiful diamond pattern on the 4h chart. Considering the inclined slope of both the 20D SMMA and 20D EMA, the completion of the diamond pattern could mark a significant continuation higher.
Price Structure
Structure Start: 03 Jan '21 23:00 UTC @ 1167.15
Structure End: 16 Jan '21 07:00 UTC @ 1216.10
Structure Low: 11 Jan '21 11:00 UTC @ 907.75
Structure High: 10 Jan '21 03:00 UTC @ 1350.70
Conclusion
The difference between the high and the low of the diamond pattern was roughly $441. Adding this amount to the end price (the exit price of the pattern) gives an estimated future level of 1657.10. The 20D EMA has acted as wonderful support for ETH/USD throughout this most recent bull run so keep a close eye on it.
@Crypt0J1m Diamond pattern can signal continuation or reversal. The entry point is when the price will break the upper or lower trend line. In this case, the upper trend line was breeched first so the expectation is a continuation higher while the lower trend line coincides with the 20D EMA giving more confidence for support if the pattern fails.