ETHUSD has been trading within a Channel Up on the 1D chart since early April. The price has traded on the lower half of the pattern for most of the time, which serves as the demand zone for accumulation. The upper half was used so far for profit taking by long-term traders.
Though this framework is relevant, the most important development of the last days is the $400 Resistance which has been tested (and failed to break) three days ago. This is similar to the June-mid July price action when ETH again struggled to break the (at the time) 255 Resistance, but when it did an aggressive rally started straight to the profit taking zone of the Channel Up.
Notice how in both cases during the later stages of the Resistance testing, the 1D MA50 (blue trend-line) turned into Support. Also the LMACD pattern is similar.
Do you expect a strong rally once this Resistance breaks? Feel free to share your work and let me know in the comments section!
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I'll be looking to play Long if the red resistance line is broken upward. Thanks for sharing your idea 🐻❄️😃
UnknownUnicorn100937
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I do expect. Whatever, as far as the technical setup is concerned, it can be viewed in terms of probabilities, defined by the profit target and stop loss. With a stop entry on a breakout of 400, a stop loss below the MA50, around 360, and a profit target of 600, that would be a reward to risk ratio of 5 to 1.
CryptoSharknado
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i do anticipate a move up soon, but am a bit weary of a little dip out of the channel to about 355, with the move up i expect some resistance and consolidation at about 480 and 525 with potential to move up to 600-620