MagicPoopCannon

ETH May Be at The Top of an Uptrend Channel

COINBASE:ETHUSD   Ethereum / U.S. Dollar
Hi friends! Welcome to this analysis on Ethereum! Let's get to it! Looking at the daily chart for ETH, we can see that after spending about two years below a major resistance zone (in red,) near the 23.6% retrace, ETH has exploded higher! However, the volume isn't that impressive, and the RSI is rising deep into overbought territory. Speaking of the RSI , you can see that historically when it has been around 80 or higher, there has usually been a corresponding consolidation or pullback on the chart. So, while I do think ETH will eventually break out to new all time highs, it's possible that we could see a pullback or a brief consolidation in the near future, which IMO would be an opportunity to go long.

Looking at the most recent action on the chart, you can see that ETH could be at the very top of an uptrend parallel channel right now. The lower trendline of that channel is well defined, and it has been copied over to show where a channel could lie. When I assess channels that haven't fully formed yet, one thing I look for is reactions to the middle region of the proposed channel. In this case, you can see that ETH has had some reactions around the area where the center of the channel would be, giving merit to the proposal of this channel. Since ETH is at the top of it, we can easily monitor it as a key resistance level . If we see ETH turn to the downside here, it would validate the channel, forming two key highs on the top trendline. From there, we could trade the channel as we see fit. On the other hand, if ETH breaks out above the top of it, that would change the analysis.

Looking at the Fibonacci levels, you can see that ETH just broke out above the 32.8% retrace. So, if this area doesn't act as resistance, and if the top of the proposed channel is surpassed, I think price could rapidly rise to the 50% retrace (around $750) and then the pivot high of $830. Ultimately, I think ETH will retest the all time high, but it will have some pullbacks along the way. The top of this proposed channel could be the starting point of the next consolidation or temporary pullback.

I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-

Comments

Could be, I can definitely see it. I'm thinking this will become the right side of a really large cup and handle structure. It could be both IF we do break out above the channel this time. I think we could see $1,400 again in early 2021, especially with Bitcoin being so bullish and ETH 2.0 right around the corner. I'd love your thoughts on that. Always appreciate your analysis!
+6 Reply
Thank You kind poop master!
+1 Reply
Thanks poop I like the new squishy poop picture
+1 Reply
Nice & Great as usual, so what is your analysis regarding ATOMUSDT !!?
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I though is going to zero :)
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so you think its going up?
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Testing resistance area 🐻‍❄️🙏😊😃
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yasss chocolate swirl cannon
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