The bears have failed at the first attempt to the support of the 2018 low. There was simply not enough selling volume. Now before we get too subjective, bulls or bears, this volume behavior is pretty standard inside of a triangle. Let me explain it a bit more since some might not understand it exactly.
What do we usually see inside of a triangle like this? We see lower highs AND we see volume decreasing. The decreasing in volume made sure the bears lost the fight the past few days and the bulls have taken over since. Now we have a small move up and volume is increasing a little bit, bit still far from convincing. If the buyers do not show more force, things will slow down again and then we usually see the first bulls getting second thoughts and they start to sell. If the bears see the resistance is holding too, they might start to short it as well and that way we get a lower high.
Maybe even see it as a war game, where during a bear trend, the bears are in full force in an open field, not scared of anyone. The bulls are still hiding in the woods, outnumbered, sometimes peaking over the the fence to see if reinforcement have arrived yet from the other side of the war zone, so they can attack the bears from both sides and with more soldiers than the bears.
So if your wondering why i always keep saying VOLUME, this is it. Volume is everything, since volume are the buyers and sellers.
Now this double bottom pattern is not great, very simple. We should have seen a test and bounce from the low a few days earlier. But there is still a chance though. But the bulls need to to break the the triangle on the upside and make a big rally towards the first resistance on the left chart. If we start to drop again towards the low, it could still work out in favor of the bulls, but objectively speaking, their chances would be less than 25% if that happens.
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Previous analysis:
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So the triangle is still showing it's resistance on the ETH bulls. That small bulls flag we had yesterday has obviously failed and we dropped to a support zone again where there is still a chance for a higher low.
Now we can see a clear support level which the bears need to break. The red resistance is the first level for the bulls to break. Yesterday's high and the triangle resistance or of course the more important levels to break now.
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That bear flag on the left, i don't like it as a basic bear flag, the wicks up and down seem to big.
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Sometimes it's all in the details, if you know what to look for :).
Still below that heavy resistance on the left though. But if we can see a bull flag form on the right, the chances for a break would increase a lot.
Low volume weekends followed by Monday blood bath. Let's not kid ourselves we created an insane bubble that has to reset everything before we have a sustained uptrend.
You should have a look at the historic support levels for ETH. This $83-84 support is so important! I've been keeping an up to date analysis on ETH with a little different approach if you are interested. Botje's analysis is nearly the same as mine short term, but you should also look at the long term chart.
I'm really invested in this fractal so I'd really appreciate if you checked it out and maybe leave a like :)
EATrading1
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ETH / USDT
We must stay above 80$ zone to reach the following targets on the chart but u have to know that Closing 1D candle under 80$ take us to a new dump the real bullish wave after the breaking of down-trend and closing 2 daily candles above it