ETHUSD has been stumbling along while BTC was on the mega rise. Fans of the so called "altcoin cycle" were rooting for a span where the profits of BTC are dilluted among the altcoins. ETH's recent sharp climb is a testament to that. But how sustainable is it and where do we go from here?
I think the prices are set to cool off. The recent bull run needs to be adjusted and rationalized and certain pullbacks are bound to happen
There are two price targets in the short position. You can see that they are backed by many patterns, such as the elliot wave, on the second Elliot Wave, the 5th move is downwards toward $180, which is also testing the bigger raising wedge, and if that breaks then we are down to the start of the edge, which is $150.
The wedge can entirely be neutralized by breaking it now upwards, but the RSI doesnt show much power and the volume seems to be declining. Only a surprise bullish move by an unexpected fundamental could cause sudden breakthroughs. A very conservative move is to take a position towards $180, set a stop loss very close to your entry position. If the price reaches 180$, pay close attention to the market sentiment, this will gauge the severity of the bull market as well.. If the prices go to $150, the bull has significantly cooled off, but as of writing that I do not believe that to be the case. So be very careful on the way back as the tide may turn to LONG very soon!
I think the prices are set to cool off. The recent bull run needs to be adjusted and rationalized and certain pullbacks are bound to happen
There are two price targets in the short position. You can see that they are backed by many patterns, such as the elliot wave, on the second Elliot Wave, the 5th move is downwards toward $180, which is also testing the bigger raising wedge, and if that breaks then we are down to the start of the edge, which is $150.
The wedge can entirely be neutralized by breaking it now upwards, but the RSI doesnt show much power and the volume seems to be declining. Only a surprise bullish move by an unexpected fundamental could cause sudden breakthroughs. A very conservative move is to take a position towards $180, set a stop loss very close to your entry position. If the price reaches 180$, pay close attention to the market sentiment, this will gauge the severity of the bull market as well.. If the prices go to $150, the bull has significantly cooled off, but as of writing that I do not believe that to be the case. So be very careful on the way back as the tide may turn to LONG very soon!
Comment:
The candles have just broken out of our chart formations. The falling wedge has just now been devalidated when the price jumped to $205 today. There is still time for cowards to enter back into their position. For the rest, a new "Bump and Run" formation was discovered, again looking at the monthly bull run, and a sudden "bump" away from a steady "lead in" that forms what looks like a double top. The parabolic bump is backed up by an increased volume, but RSI shows exhaustion and so does STOCH RSI show overbought values. It's a dangerous game, because traders are greedy for a frenzied bull run, but we need to be realistic and cool off. This is a last chance for a short, target stays the same at $180, once we get there we will look for further opportunities. Stay strong
