ETHUSD has shown a lot of strength today and so I think an update of my ETHBTC inverted head and shoulders post from a few weeks ago is warranted. It is my hope that we don't perform just yet so I can get more time to enter my position but if the gains just go insane from here I might find a way to cope with that. The price action is stalling at wedge resistance so we may have more time still. From the neckline we would have an absolutely crazy two to three months so you don't need to rush and this overall bull market could last over 5 years so you don't need to short circuit your brain with high margin trades.
The inverted head and shoulders gives traders a lot of potential entries into their trades or for investors to add to their positions
Break out of the wedge
Retest of wedge resistance as support
Break of of the neckline
Retest of neckline as support
Of course, if ETH is impulsive enough against both USD and BTC then these retest may not happen.
The Visible Range of the chart is set to the break of consolidation in 2017 to show the blow off top and latest consolidation. This shows high volume node confirming the neckline as well as a low volume node above that price action can slice though. The target shown by the cloned Hight bar is in a low volume node and this suggest either underperformance or over performance in the green box. There is some activity to the VPVR at .050 so I would not be surprised if we see some flagpole consolidation and then performance around that area. A flagpole performance there makes it more likely price reaches 0.072
Going to the weekly the 50 is below the 200 and so we should be watching for the eventual golden cross. The Average True range is a great tool to find local bottoms and this double bottom at all time lows from earlier in the year within this inverted head and shoulders structure suggest the time to accumulate is now. I personally intend to shovel as much money as I can into eth while ethbtc is below the 200w
A higher timeframe shows that the price action is finding support on the 20 month SMA (which is the monthly bollinger band baseline) and the neckline of the head and shoulders is the 50 week SMA. The stochastic RSI is poise for a potential bullish cross and the RSI has a lot of room to run. The Stochastic RSI by itself doesn't give us a signal but a cross and the K going into overbought would be very bullish. The MACD is a little inconclusive but should this structure perform the MACD will go above zero and that monthly signal flipping will change the bias of a lot of traders (and algos).
Please review the linked idea from Dec 21s where I first posted on this. I think I recognized it a week or two before that but it took me a week or so to find the time to write a post up. I don't ask often, but I think this one is worth a share to anyone you want to help make money.
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Bias is almost completely towards ETH at this point. Previous resistance became support on top of the wedge.
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It appears to me that ETHBTC after popping of of the falling wedge is making a symmetrical triangle My guy and experience is telling me that will probably turn in to an ascending triangle as this takes more time to develop but if it goes up even quicker I will find a way to cope.
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We are at the neckline. There are some wicks that need to be surpassed and price might retest the neckline but this is on the verge of performance for the next couple of months.
It’s seems that Alts run up more during the last year of the run (if we start this at the COVID crash), but give up way more.
This_Guhy
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@FerroIgnique, Yep, and when I see the pi top indicator flashing sell or the 20w fail as support on btcusd I will know the gig is up.
anthonylwang82
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Any update ?
This_Guhy
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@anthonylwang82, I'll do a more thorough update later but at this point if you hit the play button on the main chart you will see ethbtc price action fast approaching the neckline and on the edge of performance. Key point remains support was found on the 20 month and the neckline is the 50 month. Expect in future to those to cross bullishly and for the gains to be almost incomprehensible.