It's been a while since I posted an Ethereum analysis and I decided to make a quick one now before I go out.
Ethereum has been trading downwards, breaking a higher low on 30th July and trading downwards ever since. Price did something that I did not expect on the 8th august, and that was to break a very key support level on Bitcoin. With bitcoin breaking such a key level, Ethereum naturally followed it's movements to the downside. I actually scanned Ethereum on multiple timeframes to best agge what is happening in the markets right now, and what I did realise is that ETH is about to hit a MAJOR weekly support level. this level is key because if price fails at this weekly support level then price could go very, very low.
ETH right now is heading towards the weekly support. When I began analysing price on the 8 hour chart, I discovered that price is currently in a 3 wave flag pattern. When measure moving the flag pattern for a target, I discovered there is a support at this level. What I later discovered was that the 3 wave measure move target directly coincides with the WEEKLY support level! This indicates that buying at the weekly support level at 350 level could be a great idea!
Although a good idea, of course conditions need to be met. Obviously when hitting 350, I want to see reversal candlestick signal of some kind confirming the bulls/a rejection candle to the lows at this level, and some other technical factors.
As it stands, price is diverging on the Stochastic, but obviously IF the move does lower, this could be negated at a later stage. HOWEVER, price has already hit the low that's good for a buy, SO price does NOT have to necessarily come down and retest it again, even though probabilities say that it's likely to do so.
Please leave a LIKE and FOLLOW. I'd really appreciate it.
Thank you for your support.
Order cancelled
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No trade active as the set up was technically invalidated. Price did not retest at the support again, rather just breaking straight through the support zone.
No bulls around right now, and bears will likely keep pushing for the meantime.
Please leave a LIKE. I'd really appreciate it.
Comment
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Reason for trade not working:
""Although a good idea, of course conditions need to be met. Obviously when hitting 350, I want to see reversal candlestick signal of some kind confirming the bulls/a rejection candle to the lows at this level, and some other technical factors.""
There is something interesting to note here.. H&S with many coins... please take a look at this:
DSHUSD
ETHUSD
NEOUSD
IOTUSD
BCHUSD
ETCUSD
ZECUSD
But not on XRP... It is just a slow fall....
XRPUSD
Fovillain
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Thanks Tom, it' good to have an eth analysis from you, much appreciated. I have a bit of a noob question about RSI, specifically on ETH if you don't mind?
Some guidance I read said that overbought/ oversold can be a bit simplistic without taking account of the overall trend, which I guess here is down? Anyway, RSI below 30 for eth seems to engender different responses depending on the timeframe. SO yes, on 4hr + RSI below 30 seems not to be able to change the overall downtrend, but on 30minutes or less, oversold RSI does create mini-pumps.
So my question really is how useful do you think RSI is and is there a useful approach that you can share for using it for ETH?
Chimp_of_the_North
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gferrer002
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Thank you !!
lifelonglearner87
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Thank you
interleo
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Thank you!!
artem.mischenko
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Thanks for the chart, would ~420 be your first profit target in this setup?
GeorgeMuscat
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300 need to hold. Might be worth a long position at 290 with a tight stop
UnknownUnicorn2774089
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opps, another black swan event that no one saw coming
DSHUSD
ETHUSD
NEOUSD
IOTUSD
BCHUSD
ETCUSD
ZECUSD
But not on XRP... It is just a slow fall....
XRPUSD