Expanding on my original thought regarding large head and shoulders that looks to be forming on the chart, ETH continues to create lower highs in a falling wedge pattern. I expect continued slide within the channel prior to breakout. The end of the wedge happens to coincide roughly when the right shoulder should start aiming back towards the neckline. A breakout from this wedge towards the neckline would be extremely exciting in my opinion. As always, volume is going to be a big indicator here. Trying to time the bottom could be risky, but a breakout of the wedge with any significant volume pop would be a great opportunity. Purple dash line indicates the downward trend line from the all time high. This is an important area to watch as well as it could provide resistance.
A solid breakout of the head and shoulders pattern would target ~ $1250
***This is not a recommendation to buy or sell. Please do your own research and make educated trading decisions***
@sushrest, ETH has begun to distinguish itself from the BTC market. While the ETH/BTC Pair still has an effect on ETH, the fact that ETH led the recent recovery, NOT BTC, tells me that anaylsis of the ETH/USD pair is valid without leaning on what BTC is doing.
sushrest
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@j0v8008, Thanks .. will keep this in mind.. things are changing so u never know..
TheGush
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@j0v8008, agreed- we’re finally seeing ETH begin to shake its correlation to BTC’s movements and take the lead. Not all the way there yet, but I trust that when the flippening happens, BTC will be following master ETH like a puppy. This divergence from BTC’s influence and control is the beginning sign that it could be happening slowly. Let’s watch this year and see how it unfolds.