Hidden and Classic Bearish Divergence Downward Move

Quick and Simple: We have hidden bearish divergence on this uptrend from just before the drop on the 29th and the recent highs being formed right now. Within the current top that is forming classic bearish divergence. This classic bearish divergence is only visible on the 1h timeframe but combined with the hidden divergence clearly visible on the 12H I am comfortable that this will be breaking down quite soon. Also, the last two 12H candles show a lot of profit taking/wicking and that is another sign this uptrend is coming to an end.

Here is a chart I posted about a week ago showing how ETHUSD formed a falling wedge late 2016 and how I think we are going to see a repeat of the same currently. If this breaks down as the I suspect we should be seeing ETHUSD just below $180

Since BTC and ETH usually move in lock step it is nice to see much of the same behavior happening over there. We see the hidden bearish divergence is clearly visible on the 8H timerame and we also see those bearish hammer candles creating a top. The RSI also has a rounded nature to it which also predicts a continuation to the downside. I went down to the hourly timefame and as of yet there is no classic bearish divergence so yet again I suspect ETH will break down farther than BTC, which also makes sense as I am charting ETHUSD into a falling wedge and BTCUSD into a descending triangle.

I hope it is clear that I am seeing a long term bullish outlook on ETHUSD if it finishes this falling wedge. We are in a complicated position where we want to see the price DROP in a bullish manner. If it doesn’t then I definitely got this one wrong. Not financial advice, so forth and so on. Use your stops and take profits, I know I am. I have this thing tagged as a short because I am charting this as a swing trade as I expect us to dip to the crux of the wedge and come out bullish.

Trade closed: stop reached:

The trade did not create the falling wedge like I was expecting before a breakout. We closed one candle above resistance, a red day occured where it seemed the bears attemtped to get us back under resistance and failed and now it is clear sailing for the next major uptrend. Cointelegraph is telling traders to get in at 250 and expect resistance at 322, My stop was at 203 and I am long at 204. Not financial advice and own your own trades.