It's been roughly a week since I saw this chart. I definitely will be doing more weekly chart updates, especially since ETH is my largest bag.
So far if all holds true, the head should be near completion in my head and shoulders pattern I saw on the daily from awhile ago. The real kicker is that price channel is bullish and it bounced off the support channel perfectly. Not only that, but we are again near the red line resistance (~$244-$248).
How do I see this play out? Well the 20 MA is hugging that channel giving it good support. However any break under that line would cause heavy selling as the lack of confidence could see us push back to the sub 220 levels again. Without a recover from that, we would be heading toward the 200 MA for support which would bring us back to the $180s. Right now, what I am looking for is that RSI and how well it can bounce off the 50s and shoot back up. Volume needs to also increase as we head up again. Lot of things have to go right here for us to break that resistance toward the positive.
The price is currently trading above the ichi cloud and MAs (20,55,200), inside the price channel, nearing resistance (again), RSI bounced off the triangle I drew -- These are all signs of continued movement toward a higher price.
However, MACD and the decrease in volume have me concerned. Very concerned. Last week I called for a short to reach the possible mid 210s-220s and it wicked around 225. Roughly a $20 drop from its high. This week I call for patience to anyone who hasn't gone in. We love volatility and we will see that soon so no need to force anything. If you are already in the low 200s, keep an eye out. If you want to get in, I wouldn't recommend it since you're safer getting in once we broke the resistance and retest it later on. However if you must get in, do it asap as we inch further north to that resistance again. Try to get in with a TIGHT STOP LOSS if this goes haywire. Anything under 225 would be a good stoploss (assuming you at least bought in the low 230s) to avoid missing the train if this goes north. This funnel should be resolved around June 19th-20th (unless one side takes over).
As always, eagle eye 0.0
So far if all holds true, the head should be near completion in my head and shoulders pattern I saw on the daily from awhile ago. The real kicker is that price channel is bullish and it bounced off the support channel perfectly. Not only that, but we are again near the red line resistance (~$244-$248).
How do I see this play out? Well the 20 MA is hugging that channel giving it good support. However any break under that line would cause heavy selling as the lack of confidence could see us push back to the sub 220 levels again. Without a recover from that, we would be heading toward the 200 MA for support which would bring us back to the $180s. Right now, what I am looking for is that RSI and how well it can bounce off the 50s and shoot back up. Volume needs to also increase as we head up again. Lot of things have to go right here for us to break that resistance toward the positive.
The price is currently trading above the ichi cloud and MAs (20,55,200), inside the price channel, nearing resistance (again), RSI bounced off the triangle I drew -- These are all signs of continued movement toward a higher price.
However, MACD and the decrease in volume have me concerned. Very concerned. Last week I called for a short to reach the possible mid 210s-220s and it wicked around 225. Roughly a $20 drop from its high. This week I call for patience to anyone who hasn't gone in. We love volatility and we will see that soon so no need to force anything. If you are already in the low 200s, keep an eye out. If you want to get in, I wouldn't recommend it since you're safer getting in once we broke the resistance and retest it later on. However if you must get in, do it asap as we inch further north to that resistance again. Try to get in with a TIGHT STOP LOSS if this goes haywire. Anything under 225 would be a good stoploss (assuming you at least bought in the low 230s) to avoid missing the train if this goes north. This funnel should be resolved around June 19th-20th (unless one side takes over).
As always, eagle eye 0.0
