Update from previous idea:
ETH has had a crazy week, my previous analysis caught me out as well dropping lower than I expected it would, if you zoom out of my chart you can see it almost touching my trend line at 3906. not a great analysis by me here.
I have taken a large fib a while ago and my favourite retracement level is the small box between the 0.382 and 0.414, price actually managed to come straight into that box before seeing a lovely bounce back to the upside. (wish I had noticed that fib before the big drop)
now we are in a crucial area for several reasons, first reason is price failed to make a higher high, it is extremely close but that is what price can do, tricks the trader to go long as it looks like we are bullish but I would potentially look at a double top pattern playing out here or a W but that is less likely.
I have drawn my most bullish scenario here and that is an inverse head and shoulders we are looking at my original box acting as resistance and I think a reset of the lower time frame RSI and macd will give price the momentum it needs to push back to the upside, finally breaking this short term down trend pattern and having a lovely Monday.
not to mention one of my favourite trading metrics, the CME gap for ETH being 4325, literally at the top of my support turned resistance box, leaving the perfect setup for what I am predicting.
ETH has had a crazy week, my previous analysis caught me out as well dropping lower than I expected it would, if you zoom out of my chart you can see it almost touching my trend line at 3906. not a great analysis by me here.
I have taken a large fib a while ago and my favourite retracement level is the small box between the 0.382 and 0.414, price actually managed to come straight into that box before seeing a lovely bounce back to the upside. (wish I had noticed that fib before the big drop)
now we are in a crucial area for several reasons, first reason is price failed to make a higher high, it is extremely close but that is what price can do, tricks the trader to go long as it looks like we are bullish but I would potentially look at a double top pattern playing out here or a W but that is less likely.
I have drawn my most bullish scenario here and that is an inverse head and shoulders we are looking at my original box acting as resistance and I think a reset of the lower time frame RSI and macd will give price the momentum it needs to push back to the upside, finally breaking this short term down trend pattern and having a lovely Monday.
not to mention one of my favourite trading metrics, the CME gap for ETH being 4325, literally at the top of my support turned resistance box, leaving the perfect setup for what I am predicting.
