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I really thought we would only make it to 494 on this rally. Great job with the higher high, ETH! While I love the newborn bullish momentum of the crypto market in general this week, it looks like we are gearing up for a retrace and testing of support lower. I'm anticipating sale prices before the next higher high.
As we can see, ETH (and most alts) are displaying a H&S now, a price pattern consistent with the bearish divergence we see on the 4HR RSI. Daily RSI still has a ways to go up, so we are being cautious here.
To be fair, given market sentiment and the power of FOMO, I'm only about 50/50 on this pattern playing out but I still want to share what I see.
I like ascending H&S patterns because if they fail, it's not too far to the stop loss at the pattern invalidation line, just above the head. That said, if we start rallying from here, I will probably deleverage above 494. Of course, as always: follow your own strategy and trade according to your own risk tolerance. With the week long bull run still in progress, this short is counter short term trend, but consistent with longer term trend.
Measure twice, cut once.
May all of life's treasures be yours.