ETH finds itself at a major inflection point right now in the fact that there are numerous bullish and bearish things all taking place with this asset at once. For one, we have seen multiple higher lows and higher highs which as we can see has formed a nice uptrend in price action that has lead ETH all the way to the 50% retracement level of its all time high to its double bottom lows set in June and July.
We are battling valiantly at this level and currently are just a hair above it near the close and it will be vital that we close a daily candle above it but we find ourselves with a more pressing matter. And that matter is that we are at a point where if this trend breaks that we are in, it could be bearish price action for the foreseeable future. Right now I am racing to get this post out before fireworks kick off but just know that if we break the trend a retest of $2944 would be likely and if that breaks we have a good ways down to our .382 fib level at $2721.. not to mention what could be the beginning of a possible bearish head and shoulders pattern that could ultimately take ETH down to a price level of about $2624.
It is my hope that this does not happen nor am I expecting it at this moment. I am not in a short nor looking for one either, HOWEVER, Ethereum must get going if this bearish scenario is to be avoided.
Keep in mind that we have just closed on the daily as of writing this and bulls can rejoice that ETH closed BARELY above the critical .5 Fibonacci level. So technically that would make this the perfect long opportunity if you believe in this asset.
I only wanted to paint the bearish picture for folks to put on their radar as this is very real and the likelihood is high that other traders are eyeing this as well. So its a good buy opportunity right now but BE CAUTIOUS. This is the nature of inflection points in the idea that they often happen at 50% retracement areas. The 50% retracement is indeed the proverbial "fork in the road".
So in conclusion, we are watching closely for either a bounce here at $3036.. or, a break of the green upward sloping trendline. If the trend breaks our attention then turns to $2944 as that would be the level bears must break to confirm the bearish breakout of the trend.
A break and daily close below $2944 would very likely be the end of the bullish trend and the beginning of a deeper pullback.
We are battling valiantly at this level and currently are just a hair above it near the close and it will be vital that we close a daily candle above it but we find ourselves with a more pressing matter. And that matter is that we are at a point where if this trend breaks that we are in, it could be bearish price action for the foreseeable future. Right now I am racing to get this post out before fireworks kick off but just know that if we break the trend a retest of $2944 would be likely and if that breaks we have a good ways down to our .382 fib level at $2721.. not to mention what could be the beginning of a possible bearish head and shoulders pattern that could ultimately take ETH down to a price level of about $2624.
It is my hope that this does not happen nor am I expecting it at this moment. I am not in a short nor looking for one either, HOWEVER, Ethereum must get going if this bearish scenario is to be avoided.
Keep in mind that we have just closed on the daily as of writing this and bulls can rejoice that ETH closed BARELY above the critical .5 Fibonacci level. So technically that would make this the perfect long opportunity if you believe in this asset.
I only wanted to paint the bearish picture for folks to put on their radar as this is very real and the likelihood is high that other traders are eyeing this as well. So its a good buy opportunity right now but BE CAUTIOUS. This is the nature of inflection points in the idea that they often happen at 50% retracement areas. The 50% retracement is indeed the proverbial "fork in the road".
So in conclusion, we are watching closely for either a bounce here at $3036.. or, a break of the green upward sloping trendline. If the trend breaks our attention then turns to $2944 as that would be the level bears must break to confirm the bearish breakout of the trend.
A break and daily close below $2944 would very likely be the end of the bullish trend and the beginning of a deeper pullback.
I am out and about right now and in a rush but I wanted to get this out to my followers as it is Sunday morning and many may not be paying attention to the markets right now.
It is unfortunate I have to bring this news but ETH has broken our green trendline of support and now appears to be confirming it. I expect a bounce soon but now that we have broken key areas of support, these same areas will now serve as resistance to the price so any short term bounce could be rejected by immediate resistance.
Sunday evenings (Eastern US Time) is usually very bullish so it will be interesting to see how the close today on the daily goes. But in the meantime I suggest heavily hedging and proceeding with extreme caution if you are interested in taking any longs in this asset in the immediate future.