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.***
@TonyCryptano, I guess this graph strengthen the idea that BTC will not break 11700
TonyCryptano
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@serhans, We are in "Blind Zone". This right shoulder is very extended. Doesn't look like whales want to get rid of their ETH coins.
TD hit 9. BB tightened. Very very neutral.
neonma
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I've made a huge mistake and I bought eth for 10k at the price of $1272 near the all time high considering that the hype will push it up a little more...
Is there a considerable amount of truth in assuming that the currency will pass that amount for which I paid for in the course of 6 months from now on ?
Thank you
ethhunter
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@neonma, maybe MPC doesn't give you the whole truth? Imo He should just stayed like the good bear he is. BTW no hate MPC, i love ur stuff, it's very educational, but i think there is few that knows that there is a whole another level to TA too :)
neonma
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@ethhunter, I completely understand everything what MPC is doing, and I am very thankful to him for taking the time to highlight everything he has. MPC does not stand before decisions, I am just learning from his opinions.
Thanks.
houseofari
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@neonma, I've been buying ETH from 300 dollars to 1200 dollars. A friend of mine bought at 20 dollars to 500 dollars and sold when it went down to 350. He was kicking himself. "How could I buy at 500 dollars?" This is why: you believe it will be worth more. My question for you: what do you believe? The reason I bought is because I believe ETH will be worth so much more in the long term. Most traders think BTC and ETH will reach at least six and five figures, but that could also be traders comforting each other and themselves. The truth is: we don't know. My opinion is: buying 1 ETH at 1200 dollars is a good investment. Buying ETH at 2000 is a good investment even. And when it has become 2000 dollars and there are no signs of ETH getting regulated to death, I will buy more.
unspecial
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@houseofari, The real question is not about ETH but about yourself. Are you a trader or an investor. Investors take a position and hold on for dear life - they ignore the noise of the train (and the passengers) as it powers through the terrain.