Hi friends! Welcome to this often imitated, but never duplicated, update analysis on Ethereum! Let's get it. Looking at the four hour chart, we can see that ETH appears to be forming a large head and shoudlers pattern, as it remains under the resistance of the 50 EMA (in orange.) For the past two days, Eeth has been confirming the 50 as resistance, and now we're heading lower, in an attempt to complete the formation. Volume is light, and the MACD is drifting sideways, as traders stand clear, sensing possible danger. The 50 EMA is moving down toward the price action, and is likely to remain resistive. Therefore, there is a high probability that it will continue to push ETH lower, until the right shoulder is completed.
You can see that we're also under the 20 EMA (in blue) as ETH finds sustained weakness at the moving averages. Since the 20 EMA is being particularly resistive at the moment, we can use it as a gauge of progress. If ETH get's above it, we can look to the 50 as the next level to put any rallies in check. With that said, I wouldn't trade this until I see a breakdown. Once a confirmed breakdown occurs, for educational purposes only, we could place a short trade with a stop loss just above the neckline. If you wanted to be more conservative, you could do the same thing at the maroon trendline, just below the neckline of the head and shoulders pattern. That would open up a nice downside trade, with mitigated upside risk. It's critical to wait for the break though. On the flip side, if ETH manages to get above the pink downtrend channel, in the coming days, that would be uber bullish. For now, let's watch the action around the 20 and 50 EMAs in this right shoulder. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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.***
@CaueLacerda, I don't think your chart necessarily disagrees with what @MagicPoopCannon is saying. In fact, your chart probably shows what it would look like if we break above the pink line. It seems like it could go either way very strongly right now and we just don't know which direction that is yet. The things to pay close attention to in @MagicPoopCannon's analysis is the triggers that indicate which way it will go. Once we go below the red line, it's highly probably we'll keep going down a good distance. If however, we go above the pink line, it's highly likely we'll see something like your chart. That's all.
StaniecLukasz
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@Levitikon, I think by the end of the week, we'll get a better grasp of where ETH is going, I like the Harmonic Theory on this one. I want to believe that if we break the decending channel and break above the 900 mark we should definitely head and grin higher' if we fail to break the decending line and break through the ascending line, then we got some turbulence below.
Right now looks like a triangle is forming to the upsides' favor.
Levitikon
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You know what is more interesting than this? The larger time-frame H&S pattern that the target of this H&S pattern would complete the right shoulder of. And since the target of that pattern is -$300, I'd be very afraid if we complete this formation and break below the neck line.
cmschlch
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will watch this closely!
Damn, how much i wish this shitty bear market would be over!
Cryptonomy
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@cmschlch, that ain't happening anytime soon.. and by "anytime soon" I mean at least 4-5 years
DaDude
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I agree with the breaking pink idea in your analysis. Hope it works out.
SorinBlajan
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Have to admit i sold a big part because of these doom shot predictions.
Then hhe next thing is "i predicted the bottom i predicted the top". I mean .. riight
HewFrancisKeller
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@SorinBlajan, It is only a doom shot if the pattern completes itself. It never did...
SorinBlajan
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@HewFrancisKeller, yes, if its dumping its going down, but it can also pump and go up. You never know. But he predicted both