Ethereum ETH possible REBOUNCE to 3800 and find out why!
Hello dear traders,
Here is another update for Ethereum ETH-USDT (on the 1 hour time frame chart), after the hefty price movement of the last few days. I would like to share with you these possible scenario's.
As said it is a hypothesis, a way to see different views on price action. It is not an advice to trade!
I see Ethereum forming the formation of a small head shoulder pattern . Ethereum is still forming the right shoulder at this moment. Only when the price goes through the red neckline the pattern is confirmed. What helps here is that from the head (HS) to the red neckline I see a massive volume. That means lots of traders are still very bullish and believe price will go north again.
The other scenario is that the price bounces off the neckline and further drops to the bottom of the descending trend channel.
My analyses with the Diamond and the head Shoulder formations on the slightly longer term are still perfectly valid.
In short.
I expect a rebound of the price to max 3817 USD after which we will dive again. Only if we break the neckline in the chart upwards with good volume of course!
If this will not happen than we will almost certainly go further down with a first target of 2873. Lower targets will be discussed later.
For now:
Resistance 3817
Support 3510, 3161, 2873, 2465 and 1948.
Price up after trendline break to the upside and price down if the neckline will not be broken to the upside!
One last important remark:
This is the one hour time frame. Prices can go up and look bullish while on the Daily time frame it is all bearish. Prices move in waves. This could be a scenario that price rebound because it is oversold. The longer term is still very bearish now! Keep this in mind if you take your positions!
This small H-S is still valid until it breaks the low (head). After a move lower than the head we will have a high probability the lower targets will be hit.
Traders, use your stops and your money management! This is not trading advice but my personal take on Ethereum. Tradings idea's for traders can be different and that makes this always a challenge. It is not a game but a way to learn and to make profits.
If you appreciate my work it would be nice if you would follow me and give me a thumbs up. That motivates me to continue and help others in these markets. Wish you all good profits!
Here is another update for Ethereum ETH-USDT (on the 1 hour time frame chart), after the hefty price movement of the last few days. I would like to share with you these possible scenario's.
As said it is a hypothesis, a way to see different views on price action. It is not an advice to trade!
I see Ethereum forming the formation of a small head shoulder pattern . Ethereum is still forming the right shoulder at this moment. Only when the price goes through the red neckline the pattern is confirmed. What helps here is that from the head (HS) to the red neckline I see a massive volume. That means lots of traders are still very bullish and believe price will go north again.
The other scenario is that the price bounces off the neckline and further drops to the bottom of the descending trend channel.
My analyses with the Diamond and the head Shoulder formations on the slightly longer term are still perfectly valid.
In short.
I expect a rebound of the price to max 3817 USD after which we will dive again. Only if we break the neckline in the chart upwards with good volume of course!
If this will not happen than we will almost certainly go further down with a first target of 2873. Lower targets will be discussed later.
For now:
Resistance 3817
Support 3510, 3161, 2873, 2465 and 1948.
Price up after trendline break to the upside and price down if the neckline will not be broken to the upside!
One last important remark:
This is the one hour time frame. Prices can go up and look bullish while on the Daily time frame it is all bearish. Prices move in waves. This could be a scenario that price rebound because it is oversold. The longer term is still very bearish now! Keep this in mind if you take your positions!
This small H-S is still valid until it breaks the low (head). After a move lower than the head we will have a high probability the lower targets will be hit.
Traders, use your stops and your money management! This is not trading advice but my personal take on Ethereum. Tradings idea's for traders can be different and that makes this always a challenge. It is not a game but a way to learn and to make profits.
If you appreciate my work it would be nice if you would follow me and give me a thumbs up. That motivates me to continue and help others in these markets. Wish you all good profits!
Comment:
Here one other interesting thing is that this small HS pattern also did the trick in this channel before.
Comment:
Dear traders,
Please share your thoughts about Ethereum here. But write also why you think this or that. That would be very interesting, This is not a game, just sharing possible scenario's because nothing works all the time in technical analysis. It is more an art then an exact science and that is why there are so many different opinions.
But in the end is all about making profits and that can be done on many different techniques. Pattern trading, system trading, horizontal support trading, candlesticks and so on. Oh and last but not least. If you want to stay in the markets you need to reduce risk and place always stops, That is sometimes violated or forgotten but has an icredible bigi impact on your funds!
Please share your thoughts about Ethereum here. But write also why you think this or that. That would be very interesting, This is not a game, just sharing possible scenario's because nothing works all the time in technical analysis. It is more an art then an exact science and that is why there are so many different opinions.
But in the end is all about making profits and that can be done on many different techniques. Pattern trading, system trading, horizontal support trading, candlesticks and so on. Oh and last but not least. If you want to stay in the markets you need to reduce risk and place always stops, That is sometimes violated or forgotten but has an icredible bigi impact on your funds!
Comment:
Traders this scenario is still valid! Shorter term different action happen than mid term or longer term.
Please check also Bitcoin the leader! It has the biggest impact of all Coins and it is the leading force behind the ALTS!
Please check also Bitcoin the leader! It has the biggest impact of all Coins and it is the leading force behind the ALTS!
Trade active:
Hello Traders, here is a small update.
All out patterns are still valid. The bigger H-S formations, the Diamond and also the smaller inverted HS in the down trend channel.
I got the question if there is a falling wedge. Well yes you can draw 2 trendlines but for me it need to be confirmed a third time and that is not the case yet.
It is also not so important because HS is already pointing higher.
What I do see as a valid patterns is a second parallel channel, The one with the black dots. That channel is pointing lower and has an intersecion at 2800. That is close the bigger HS pattern.
So we need to see how it develops here. Will we get that bounce than check the red neckline. When continue to go lower we also could get a bounce on the lower boundery of the trendchannel.
Prices never go down in one line! it is a saw tooth/ zig zag wave.
All out patterns are still valid. The bigger H-S formations, the Diamond and also the smaller inverted HS in the down trend channel.
I got the question if there is a falling wedge. Well yes you can draw 2 trendlines but for me it need to be confirmed a third time and that is not the case yet.
It is also not so important because HS is already pointing higher.
What I do see as a valid patterns is a second parallel channel, The one with the black dots. That channel is pointing lower and has an intersecion at 2800. That is close the bigger HS pattern.
So we need to see how it develops here. Will we get that bounce than check the red neckline. When continue to go lower we also could get a bounce on the lower boundery of the trendchannel.
Prices never go down in one line! it is a saw tooth/ zig zag wave.
Comment:
Dear traders,
Here an update for Ethereum:
Here an update for Ethereum:
Comment:
IMPORTANT UPDATE
Guys, I have analyzed the market and I come to the following conclusion for now.
I personally close my LONG positions if the price of Bitcoin closes below 40000 with a day candle.
For the ALT coins this is also very important because if Bitcoin starts to dive then the ALTS will go down much faster.
However, I am now expecting a recovery and that is perfect for the ALTS an BTC but it is temporary. The long term picture looks bad for Bitcoin.
I will keep you posted but note that level of 40000! Recovery I expect in Bitcoin to 50 max 52000 USD before we start another ride down!
Disclaimer Traders this is my view no advice to buy or sell. Also, always do your own research!
Guys, I have analyzed the market and I come to the following conclusion for now.
I personally close my LONG positions if the price of Bitcoin closes below 40000 with a day candle.
For the ALT coins this is also very important because if Bitcoin starts to dive then the ALTS will go down much faster.
However, I am now expecting a recovery and that is perfect for the ALTS an BTC but it is temporary. The long term picture looks bad for Bitcoin.
I will keep you posted but note that level of 40000! Recovery I expect in Bitcoin to 50 max 52000 USD before we start another ride down!
Disclaimer Traders this is my view no advice to buy or sell. Also, always do your own research!
