Hi friends! Welcome to this update analysis on Ethereum! If you recall from my last analysis, titled "Ethereum Prints A Violent Breakout — Approaches Resistance" I was detailing the powerful resistance level (red circle) that ETH was running into. As you can see, that resistance came in the form of a convergence of the top of the uptrend channel, and the falling blue dashed trendline. If you recall from the last analysis, I said "ETH is trading inside of an uptrend channel at the moment, and it's currently reaching toward the top of it. Furthermore, there is a falling trendline of resistance (in blue dashes) that is slicing through the channel just above the current price action. Since both of those resistance levels are converging just above us, it's likely that we will see some form of resistance there. So, we need to keep an eye on this level, to see how ETH reacts. With that said, if ETH is able to confirm above this falling dashed trendline resistance, I think that will open the door to even more upside gains, potentially to around the 985 level. A failure to get above the falling blue dashed trendline , could send ETH back toward the neckline of the inverse head and shoulders pattern."
Since then, ETH failed at the dashed trendline, retraced to the INVERSE neckline, confirmed below it, fell below the uptrend channel, lost the 61.8% retrace, and it now appears to be in freefall, as traders search for support.
That's the micro view. On the MACRO view, you can see that what ETH REALLY appears to have done, is it has simply produced a failed attempt to rally above the neckline of the huge head and shoulders pattern that dominates the chart. If you recall from my past analyses, I've published many posts on the large head and shoulders there, beginning at the top of the right shoulder. Ethereum did print a nice breakdown from there, but it formed this inverse head and shoulders back into the neckline, causing the whole cryptosphere to turn bullish, and then it failed. Why did it fail? Because the larger, more dominant pattern is the head and shoulders pattern, and we were simply testing the neckline. As you can see, we are now back below the extended neckline of the huge head and shoulders pattern. On the upside, we can presume that it will act as resistance, should ETH go to test it. If we do test it, and we fail, that will be a fantastic sell signal. Technically, the breakdown below the pink trendline was a longer term sell signal, and it will also be a sell signal, if we see a confirmation below the 1200 EMA (in red.) Ultimately, I think that is a level that we are likely to revisit, in the very near future.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
hey Magic, this is a very honest comment
last few calls been quiet bad in the sense that u called for massive shorting just before the boom, and then became bullish right before the selloff
Id like to know if u also realsied that and if uve learned something ffrom it and change something
if so let us know man
Im a massive fan of yours, last few calls however made me give less credibility to your calls/feel of the market
Jrand88
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@NQ95, Im sure he appreciates constructive criticism but if i may comment on your..comment..He is not exactly making the calls you seem to think he is. Yes he said to wait for better confirmation while everyone else was bullish, thats playing it safe and sometimes that shortens profits but it almost always shortens losses. Then he pointed out where the confirmation was and said IF it doesnt get rejected from this area then it will be confirmation that it will continue up. It got rejected almost immediately which means he didnt actually recommend that anyone buy at the high, he pinpointed the key resistance and said NOT to buy until it confirms over it (i know HE bought in early, which was a bad trade, but he even said that isnt typically the smart play and that he was choosing to take a very risky gamble). He is good at TA, just not always right, noone is. Take his ideas, add em to yours and mix in some salt.
You were polite in your comment, so i dont mean you, but most of these idiot just read the headline and peek at the chart without reading his actual analysis which has warnings to go along with it. These people are idiots and should be avoided at all costs. lol
ninjamofo
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@Jrand88, spot on... if you want facts go and buy a history book.
Peymana71
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Holy god,you just learned H&S between all technical patterns,all you see is just h&s.woohoo
MagicPoopCannon
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@Peymana71, Instead of saying that, why don't you explain in technical detail why they aren't head and shoulders patterns? I'll be glad to swiftly destroy your arguments.
Peymana71
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@MagicPoopCannon, first, we see h&s in end of bullish trend not all of our trend,if your h&s is right so thats sign of reversal to bearish trend and we dont see an ih&s right after h&s.its odd to see reversal right after big reversal.
Second,we need a right shoulder only to the level of the left shoulder.this rule make a simple movement to h&s.
Maybe your h&s an invers was right but it's like you force yourself to squeeze all movements to h&s.theas days we have a lot peoples in TV that try to find little signs and patterns beetwen huge ones to help people trade but you just want to predict big ones and lately you just failed.i admire your efforts but it's not bad to give more attention to minor movements.
wolfsong5663
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Not everything is head and shoulders or inverse head and shoulders Magic. H&S are reversal patterns at the end of a trend, not patterns of almost the whole chart.
Snuby3
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@wolfsong5663, zoom out to bigger timescale and then the H&S will not be the whole chart. keep zooming out until you are happy with the amount of the chart it takes up
last few calls been quiet bad in the sense that u called for massive shorting just before the boom, and then became bullish right before the selloff
Id like to know if u also realsied that and if uve learned something ffrom it and change something
if so let us know man
Im a massive fan of yours, last few calls however made me give less credibility to your calls/feel of the market