ETH is currently lost within it's bullish patterns (For now).
Right now ETH looks like it's currently within the parameters of a falling wedge it's also broken down through many of the major support levels that is has created during the start of the bull-trend and has so far been treating the old support as resistance.
The breaks of support had resulted in an over all dip of around 60% from 2019's all time highs but since then ETH has been in a short term up-trend and has been approaching the top of the wedge and can very well break out to the upside from here.
But lets dig further into another possibility that can provide a much lower risk entry:
I have 2 big reason here why i expect a reversal to the downside.
1. While the falling wedge is a bullish pattern we are still at the top of it and right underneath both diagonal and horizontal resistance it's high risk to enter right now therefore the only valid way to enter at these high lvls would be for a break of the resistance, but the resistance here is very strong and likelihood of breaking it is low right now but still worth looking out for.
2. Our short term up trend going into this resistance zone has been pretty nice price wise but if you check the MACD you will notice that we have been bearishly diverging on the 4HR chart upon every higher high we've made in this short-term uptrend signaling that the trend has not been very strong and that we might be in for a reversal soon..
With all that said I have laid out a chart that might show some areas of value where we may have a better chance at buying then holding for the long run.
The purple zones are our S/R lvls that have yet turned to resistance
The Fibonacci levels are a retrace from our Lows back in December to or Highs this year.
And finally the harmonic over the price action in the middle of the wedge is a potential bullish shark where price might reverse. if the shark is valid price can reverse around the 149-144 dollar area marked in blue but lets say it doesn't reverse there. I believe that ETH has a major zone of support clusters between the 130-122 area in which it may be a good idea to DCA into a position at these levels.
As far as an overall stop loss is concerned I'd say a convincing break down below the wedge would be a sufficient stop.
The wedge is already quite matured and at this point we are far enough in that we could reverse at either of this support lvls which is why i suggest the DCA approach this time around and break below this wedge would take us to the 886 retracement which is confluent with a really strong support if we break the wedge and hit these levels i'd expect a violent rise back above the wedge .
So as you can see thing look overall bullish for ETH but at the same time immediate price action is still uncertain but the charts are still providing us with enough information to make plans for both the Mid-term and Longer term price action..
I hope this helped some people out; good luck traders :p
The breaks of support had resulted in an over all dip of around 60% from 2019's all time highs but since then ETH has been in a short term up-trend and has been approaching the top of the wedge and can very well break out to the upside from here.
But lets dig further into another possibility that can provide a much lower risk entry:
I have 2 big reason here why i expect a reversal to the downside.
1. While the falling wedge is a bullish pattern we are still at the top of it and right underneath both diagonal and horizontal resistance it's high risk to enter right now therefore the only valid way to enter at these high lvls would be for a break of the resistance, but the resistance here is very strong and likelihood of breaking it is low right now but still worth looking out for.
2. Our short term up trend going into this resistance zone has been pretty nice price wise but if you check the MACD you will notice that we have been bearishly diverging on the 4HR chart upon every higher high we've made in this short-term uptrend signaling that the trend has not been very strong and that we might be in for a reversal soon..
With all that said I have laid out a chart that might show some areas of value where we may have a better chance at buying then holding for the long run.
The purple zones are our S/R lvls that have yet turned to resistance
The Fibonacci levels are a retrace from our Lows back in December to or Highs this year.
And finally the harmonic over the price action in the middle of the wedge is a potential bullish shark where price might reverse. if the shark is valid price can reverse around the 149-144 dollar area marked in blue but lets say it doesn't reverse there. I believe that ETH has a major zone of support clusters between the 130-122 area in which it may be a good idea to DCA into a position at these levels.
As far as an overall stop loss is concerned I'd say a convincing break down below the wedge would be a sufficient stop.
The wedge is already quite matured and at this point we are far enough in that we could reverse at either of this support lvls which is why i suggest the DCA approach this time around and break below this wedge would take us to the 886 retracement which is confluent with a really strong support if we break the wedge and hit these levels i'd expect a violent rise back above the wedge .
So as you can see thing look overall bullish for ETH but at the same time immediate price action is still uncertain but the charts are still providing us with enough information to make plans for both the Mid-term and Longer term price action..
I hope this helped some people out; good luck traders :p
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