MagicPoopCannon

Ethereum is on Thin Ice (ETH)

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
Hi friends! Welcome to this update analysis on Ethereum! Let's jump right in, because I need to get this out. Looking at the four hour chart, you can see that ETH appears to be forming a head and shoulders pattern, inside of the downtrend channel . You can see that sell-side volume is starting to pick up on the chart, and the MACD has crossed over bearish , as it broke below the zero line, which is a technical sell signal on ETH. A break confirmation below the neckline support of this potential head and shoulders pattern, could send ETH into freefall, as the next support level wouldn't come up until the 61.8% retrace, around 716.

With that said, keep in mind that this entire pattern is just a skewed and distorted reflection of Bitcoin's inverse head and shoulders pattern. If BTC finds support around here, we may see an upside reversal in other assets, such as ETH. However, if BTC continues to fall, it should continue to cause systemic pressure across the entire crypto space.

Now, if we do see a breakdown of this apparent head and shoulders pattern, it could potentially lead to a test of the low from 2/6. I would be extremely cautious with any long positions here, especially if a breakdown occurs. Just because of the uncertainty, I would remain on the sidelines, in ETH, until there is a breakout above the downtrend channel (in blue.)

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.***

-Magic loves you-

-JD-
Poop, you forget that head and shoulders is a bearish REVERSAL pattern. Before the first shoulder started to form we were allready on bear market, so this doesn't apply.
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Hi! Would very much appreciate an update! :) Are we now looking at the target for the head and shoulders at about 716, or the 61.8% retrace? Or is the target for the now completed H&S lower than that?
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userbeauty userbeauty
@userbeauty, RSI is oversold...so in that case first a bounce up before going toward target of H&S??
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KyleKukulski userbeauty
@userbeauty, You can't base everything on RSI. it is just an indicator. Price action is all that matters. Right now price is at a key level and has not completely broken the neckline. If it does. which i hoping it will, I am expecting price to go all the way down to 500 to complete Market Maker Method. I have a markup if you want to see it.
+1 Reply
ha_invest KyleKukulski
@KyleKukulski, When do we know if it has been completeley broken?
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@ha_invest, Sorry I was busy. did you see the clean break??
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@ha_invest, We had a break and close below the neckline. then a retest. then an hourly engulfing. then a 50-100% retrace then a fall. all on the hourly chart ill add it to my markups
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could you give any comments about ETC? looks interesting the massive sell is doing...
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Thanks for TA on ETHUSD. Would be nice to see NEOUSD TA next time.
+2 Reply
eth is going down to 500 :)
+4 Reply
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