Warning signals for Ethereum possible sell off (4hr tf analysis)

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
You can see the original post I made for Ethereum here:

Price action in Ethereum appears to be trapped in a channel ever since it made its high of ~$1424.00 on Jan. 13,2018.

Ethereum bullish price swing from the bottom of the channel at ~$569.49 should have tested the top of the channel at ~$1027.01, but failed to do so. This is a sign of weakness by the bulls. Instead, Ethereum turned back down to break Support 1. The top range of Support 2 was successfully tested at ~ $786.82.
A break below the bottom range of Support 2 at ~ $756.01 will confirm further weakness and could trigger a sell off in Ethereum to about $387.

The bottom of the channel as drawn shows a maximum target for the sell off to be around $321. However, it is also possible to start to see profit taking into the last 10% or 20% of the bottom of a channel so it all depends on the risk/reward ratio that is being used in the trade.
The safest areas to buy Ethereum that provide a great risk/reward ratio are :
(1) Going long ONLY after a clear breakout above the ~$977.43. A vertical projection of the width of the channel above the breakout point gives a price target of ~$1721.
(2) Wait to see if Support 2 is broken and to buy at the bottom 10% or 20% of the current channel. Somewhere in the low $330 and $360 should be monitored for possible areas to start to consider buying Ethereum should it sell off.

Selling screnario
The best bearish scenario for now would be to see if Support 2 is broken. If it is, sell the break below the bottom range of Support 2 at ~$756.01 and a stop loss can be placed just above the top range of Support 2 at ~$786.82. Doing this would also easily give a risk/reward ratio of greater than 3:1
Join Our Premium Research and Analysis Group.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out