LongLifeTrading

Ethereum's make it or break it!

COINBASE:ETHUSD   Ethereum / U.S. Dollar
Whilst Bitcoin has shown clear technical signs of a bullish reversal (see earlier posts) and a C-phase of a Wyckoff accumulation, Ethereum is at a make it or break it point.

Just like Bitcoin will be inherently bearish should it break below $30 000, Ethereum so far shows strength after having wicked on the diagonal primary trend line on the weekly. This area neatly coincided with the 618 fib.

IF, however, Ethereum were to break these levels of support, things can turn sour and they can turn sour FAST!

As we can see, Ethereum recently made an upper bearish blue RSI closing (for more on this, please watch the RSI trilogy on YT). The last time this happened was in February 2018 (see blue arrow) after which Ethereum proceeded to lose no less than -90% of its value over the upcoming ten months.

Bitcoin and Ethereum both stand at an important cross roads. And as technical analysis is all based on probabilities and in identifying key areas of importance, as long as Bitcoin holds up its $30k support and Ethereum can defend the zone on the picture things do look good.

On a final note, when things look good technically but feel bad emotionally, you're usually on the right track. That's why it usually feels great to buy at the peak and sell at the bottom. Adhering to the opposite whenever the technicals speak in favour for the bulls and vice versa is the winning path to go.

Follow the Long Life Trading Youtube channel on technical analysis and trading. We focus on providing accurate and to-the-point analysis and all the while keeping you entertained in the meanwhile.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.