Yesterday saw ETH repeatedly probing and being rejected from price resistance area of 172-173. Price momentary broke the local bullish trend line, but shortly after breaking this level it threw a large, bullish pin bar on the hourly candlestick charts. In additional to that, it had also formed right on top of local support. Yet another sign that bullish price movement would resume. We can see that after spending a few hourly below the trend line that price did eventually break back above, and is now up almost 10% since the bottom of that pin bar. There were likely a large number of traders who closed positions sub 170 and now are reopening at 175-180, thus hurting their cost basis by 5-10 dollars. Markets love to fake traders out :)
What next? Price has just about reached the next very major resistance area which I believe resides somewhere in the 180-188 area. I would love to see price slice through this level like a hot knife through butter and never look back, but if that doesn't happen this is going to be very similar to the 150-160 area. Be watching for any bullish or bearish patterns to plan your next moves. Have your stops firmly in place, be defensive and protect your trading capital.
What next? Price has just about reached the next very major resistance area which I believe resides somewhere in the 180-188 area. I would love to see price slice through this level like a hot knife through butter and never look back, but if that doesn't happen this is going to be very similar to the 150-160 area. Be watching for any bullish or bearish patterns to plan your next moves. Have your stops firmly in place, be defensive and protect your trading capital.