The anticipated ETH Hard Fork has gone live, and the price action hasn't snapped the handle off just yet.
Price action is presently caught under the Ribbon on the 4-Hour Chart, but what's new? Minor uptrend lines are being challenged by the Bears Daily, but Bulls are in the mood for buying dips. Long Positions are still holding ground on Bitfinex, and a lot of TA Folks think "Weak Hands are Being Shaken out". https://www.tradingview.com/chart/ETHUSD...
We have a nice and stubborn Trading Range of $10 here with dump and dip buying on both sides that would keep the requirements of the handle within validation. If this is a , it'll be set to boil up and over the handle, should it meet the requirements and validate: "The duration for the formation of a handle is usually from 1 week to several weeks. The handle should be considered reliable only when it is formed in the top half of the cup formed..."
Duration of the Cup Formation is 70 days including the uptrend, which meets the requirements as well.
Keep an eye on the pattern, wait for validation, , etc.
Good luck, Traders. May you find yourself on the profitable side of it!
EMA12 has low volume price action under it, and any larger volume move, the EMA100 acting tough resistance.
EMA20,50,and 100 - pick your flavor, are acting supporters it seems.
For this pattern to play out, textbook, a strong bounce off the top half of the handle, a move down to point D or lower, and a strong rebound by the Bulls is going to be needed.
We're starting to trade real tight, MACD is sitting like a cat fish at the bottom lurking for a cross, and this weekends volatility could return.
Good luck, Traders!
This pattern, for me, is likely at the edge of invalidating. Should the closest support level give way, I would likely put my attention on a Bullish Butterfly on the Daily Chart, which is still presently a valid pattern, for observation.
We'll see if the Bulls, in a fresh week of trading, need additional support from the 78.6% levels, or if the 61.80% retracement will act springy enough for a rally.
Price action broke over the 23.6% retracement and gained the 4H Period EMA, 12, 20, 26, 50, and 100. TD Sequential is showing a 5 of 9 on the uptrend progress with the 38.2% retracement just above - the next obstacle (something I do not use very often, but also a nice indicator for confirmation, special thanks to @jdlim for the indicator).
After that, the 50% retracement @ $148 which was previous support now turned resistance.
Gaining the EMAs is a positive sign, and there is a bit of work to do for price action and the Bulls, but for the time being, this is looking short-term Bullish. A break above the 50% retracement will be very convincing with the overall pattern showing some tremendous upside.
The last leg reversal @ the 38.2% range, price action was rejected and it extended to the downside @ $103 range. For me, a close over the 38.2% and 50% range - as previously noted, is a must for this pattern. Above the 50% retracement is much more convincing of a Bullish Bias and validation of this pattern. We'll see how it plays out.
A look at Heikin Ashi Candles with TD Sequential: Looking like a perfected 9 on the current price action Daily.
At the top near $170 the perfected Sell Indicator was spot on. On the previous leg, which this candle arrangement, a perfected 9 was signaled at the previous leg down.