Hi friends! Welcome to this update analysis on Ethereum! Looking at the four hour chart, you can see that a monster fall came from my head and shoulders pattern, but ETH found sturdy support at the 61.8% retrace. Listen people, I want to be a bull. I really do. I want to believe that the end of the bear market correction is in, but I just can't. I can't side with the bulls yet. Here's why. When we look at the recovery off of yesterday's low, all I see is a bearish consolidation pattern. As you can see, there is a ton of overhead resistance, just above the current price action. We have the 200 EMA (in purple,) the 50 EMA (in orange,) the 38.2% retraced, the top of the bear flag, and the blue trendline which is the neckline of the head and shoulders pattern. All of these resistance levels are converging in the same general area. This tells us two things. Number one, the resistance is huge. Number two, if it is surpassed, that would be a tremendous short-term victory for the bulls.
Looking at the bear flag, you can see that it projects a price target, FOR A CORRECTION TO IT'S FULL POTENTIAL, right near my triangle target. Therefore, it looks like the most likely scenario, is that ETH finds resistance at this heavy resistance level just above, and breaks down from the bear flag, destroying the bulls in the process. If ETH breaks above the resistance levels, I will have a whole new opinion on the forward path of this market. However, that evidence does not exist yet. All I see, at the moment, is a lackluster bounce, with plummeting volume, into a bear flag consolidation. Perhaps, my triangle target is still on the horizon. The only thing that will make me take it down, is a powerful break above the overhead resistance levels.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Looking at the bear flag, you can see that it projects a price target, FOR A CORRECTION TO IT'S FULL POTENTIAL, right near my triangle target. Therefore, it looks like the most likely scenario, is that ETH finds resistance at this heavy resistance level just above, and breaks down from the bear flag, destroying the bulls in the process. If ETH breaks above the resistance levels, I will have a whole new opinion on the forward path of this market. However, that evidence does not exist yet. All I see, at the moment, is a lackluster bounce, with plummeting volume, into a bear flag consolidation. Perhaps, my triangle target is still on the horizon. The only thing that will make me take it down, is a powerful break above the overhead resistance levels.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
