As many of you know Powell speaks tomorrow which normally has a strong impact on the markets. On top of that major Euro news comes before his speech. Therefore, here is a potential idea on how this could play out.
If Powell comes off with a bearish bias then I think we will start slowly creeping up today and then dump tomorrow. This is because we already know that ETH has falling out of the rising wedge I posted yesterday. First target has been hit but second target of $1,430 has not been hit yet. Therefore, I think we could move back up to retest our old support of the rising wedge as new resistance and then fall lower (chart on the left). Now looking at bearish targets from a macro perspective I have on the chart on the right. If we retest our old support as new resistance the first target still remains around $1,430 to potentially try to "double bottom". Second target below that would be our last support level around the $1,350 range although that is a weaker support level. The major level of support is the green box I have drawn between $1,240-$1,280. There is a lot of price confluence with that level. If we drop below that then our next level would be our long term trendline of support. This would range between $1,080-$1,140 depending on when we would make contact. Powell making the markets fall seems more likely, but just incase he might be bullish lets analyze that scenario.
If Powell is bullish, then we should look for downwards action today (as people would be risking off to fakeout the market. This could be holding the $1,490 level for ETH and $18,600 level for BTC. Or this could be a huge collapse today to that $1,430 for ETH and $17,600 for BTC before fakeing out the market and potentially creating a double bottom on both charts to then start moving to the upside. So on the contrary, if today is bullish then tomorrow will most likely be bearish and if today is bearish then tomorrow will most likely be bullish. Good luck.
If Powell comes off with a bearish bias then I think we will start slowly creeping up today and then dump tomorrow. This is because we already know that ETH has falling out of the rising wedge I posted yesterday. First target has been hit but second target of $1,430 has not been hit yet. Therefore, I think we could move back up to retest our old support of the rising wedge as new resistance and then fall lower (chart on the left). Now looking at bearish targets from a macro perspective I have on the chart on the right. If we retest our old support as new resistance the first target still remains around $1,430 to potentially try to "double bottom". Second target below that would be our last support level around the $1,350 range although that is a weaker support level. The major level of support is the green box I have drawn between $1,240-$1,280. There is a lot of price confluence with that level. If we drop below that then our next level would be our long term trendline of support. This would range between $1,080-$1,140 depending on when we would make contact. Powell making the markets fall seems more likely, but just incase he might be bullish lets analyze that scenario.
If Powell is bullish, then we should look for downwards action today (as people would be risking off to fakeout the market. This could be holding the $1,490 level for ETH and $18,600 level for BTC. Or this could be a huge collapse today to that $1,430 for ETH and $17,600 for BTC before fakeing out the market and potentially creating a double bottom on both charts to then start moving to the upside. So on the contrary, if today is bullish then tomorrow will most likely be bearish and if today is bearish then tomorrow will most likely be bullish. Good luck.