This is a daily $ETH/USD chart that starts from the beginning of the year.
There is a large pennant trend that formed in early March starting at around $11-$15 with a basic move to about $90 by May 17th (05-17-17). Then on May 18th, the price began rallying hard to form the first (and obviously biggest) move to a high of about $450 by July 12 (06-12-17).
Using the pennant trend, the bottom green line are buys, and the descending red line are sells. The two solid black lines show oversold and undersold price ranges.
Yes we are in the technical overbought range, but this may be deceiving because we are nearing the end of the trend and the two black trend lines are about to cross in (about) a week so we could expect the trend to break in the near future. This could happen before, during, or after they cross.
I would expect $ETH to hit the top of the red trend line around $385-390, however as stated before, this may not be a sell because it could be a breakout from the pennant. At the same time, be careful that the $ETH price may continue to obey the pennant trend causing a bounce down to tests at least $350 before continuing back up. The lowest it could go before breaking down out of the pennant is about $265 or so.
Lmk what you think or if you have any insight to add.
There is a large pennant trend that formed in early March starting at around $11-$15 with a basic move to about $90 by May 17th (05-17-17). Then on May 18th, the price began rallying hard to form the first (and obviously biggest) move to a high of about $450 by July 12 (06-12-17).
Using the pennant trend, the bottom green line are buys, and the descending red line are sells. The two solid black lines show oversold and undersold price ranges.
Yes we are in the technical overbought range, but this may be deceiving because we are nearing the end of the trend and the two black trend lines are about to cross in (about) a week so we could expect the trend to break in the near future. This could happen before, during, or after they cross.
I would expect $ETH to hit the top of the red trend line around $385-390, however as stated before, this may not be a sell because it could be a breakout from the pennant. At the same time, be careful that the $ETH price may continue to obey the pennant trend causing a bounce down to tests at least $350 before continuing back up. The lowest it could go before breaking down out of the pennant is about $265 or so.
Lmk what you think or if you have any insight to add.