This is a follow on analysis from my previous ETH/USD analysis, which went perfectly to plan (See related ideas below for more information)
When analyzing ETH/USD on the 8 hour chart, it is clear price hit side-wards resistance, and has broken down since. It was clear we would have downwards movement from this zone. Price is trading lower, and could retest side-wards resistance first before a breakdown.
Price will break down in one of two ways, they are:
- Price continues to break down to the lows without correction, and hits the horizontal support zone at 498. - Price retests the side-wards resistance line at 585, before retesting, breaking down, and hitting the support zone at 580.
The only way I will change my mind on price trading to the downside is if price breaks above the side-wards resistance line, retests it as a new support and goes to the upside.
Bare in mind, just because 498 is the horizontal support zone, it does not mean price has to go this low. This is simply the lowest it can go.
I will continue to update this analysis if enough people request it.
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@DragosAlexandru, I'm all fine with BTC falling down but ETH is still corelated too much :/ We are taking smaller hits, I'm worried that if BTC will fall below last two bottoms - we'll all collapse with warp speed :F
DragosAlexandru
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@Saeglopur, we have to take into consideration people that are mining bitcoin. They are helping bulls because they don't have interest in selling too low. I talked with a lot of them and most of the are holding because they think bitcoin will go very high in the future. All the market is following bitcoin, this is why don't like to trade smaller coins. Ethereum still has a chance because has smart contracts, a lot of new coins are based on ethereum algorithm and people use it to go through coins. This is why it didn't fell so fast.