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-
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-