Is it possible that ETH is just forming a massive bull flag? Or do we drop more from here?
In my previous updates I pointed out that the divergence on the daily RSI could be a problem. What's interesting is that ETH decided to bust up $20 or so to 290, before dropping all the way down to 240 rather quickly. It's been some time since we have seen a move like that, and I suppose it was warranted after everything the has happened.
The good, the bad, the ugly.
The good- The good thing here is that ETH still appears to be forming a massive bull flag for a potential run-up. Daily MACD is in positive territory, the RSI divergence has played out and the Weekly chart still looks rather bullish.
The bad - Getting a move like this always can lead to more downside.
The Ugly: How far could we go down if we break below this flag? Potentially all the way down to this 175-200 area. Quite ugly and not fun.
If you are looking for a new entry, this is a good spot to do it. Great risk to reward right now. You can risk very little for a 10:1 gain or more if we really move up, or at least 4:1 if we are able to get up to 290 again. And you can control your risk by putting a stop just below this flag here.
I will be putting stops below this flag area. Protecting profits and trying to re-enter on the downside (if we move down) and let the market dictate what happens. It appears the whipsawing is over and this area either holds or we start correcting. We'll see what the market decides to do from here.
Happy trading and hodling,
-Sherem
In my previous updates I pointed out that the divergence on the daily RSI could be a problem. What's interesting is that ETH decided to bust up $20 or so to 290, before dropping all the way down to 240 rather quickly. It's been some time since we have seen a move like that, and I suppose it was warranted after everything the has happened.
The good, the bad, the ugly.
The good- The good thing here is that ETH still appears to be forming a massive bull flag for a potential run-up. Daily MACD is in positive territory, the RSI divergence has played out and the Weekly chart still looks rather bullish.
The bad - Getting a move like this always can lead to more downside.
The Ugly: How far could we go down if we break below this flag? Potentially all the way down to this 175-200 area. Quite ugly and not fun.
If you are looking for a new entry, this is a good spot to do it. Great risk to reward right now. You can risk very little for a 10:1 gain or more if we really move up, or at least 4:1 if we are able to get up to 290 again. And you can control your risk by putting a stop just below this flag here.
I will be putting stops below this flag area. Protecting profits and trying to re-enter on the downside (if we move down) and let the market dictate what happens. It appears the whipsawing is over and this area either holds or we start correcting. We'll see what the market decides to do from here.
Happy trading and hodling,
-Sherem
Comment:
Another fun tidbit. If we look at how big the flag is, it's about $70. (Yes, percentages and more details are more accurate, but this gives us a rough estimate) If we bust past the recent high of 290 that will put us at 360. Just shy of our resistance point at the 375 area we have been looking at... Interesting!
Comment:
Looks like we are getting a drop, not a move up. Profits booked on stop being hit. Will wait for another re entry
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