ETHUSD Breakdown: Coming back strong from the 650 Call!
Heyo all!
Note: You might want to zoom out a bit... I cant edit the chart view/size anymore (sad face)...
Looking into Ethereum again.
Like I mentioned in the last Ethereum update, my next buying opportunity was 650, with a tight stop. Thankfully, Ethereum bounced right there at the 200EMA, not falling further than 640!
If it continues rising, I will see how it reacts to the prior resistance at the 770-775 level.
After this, it only has the trend line of death to deal with. At this point, the total trend has turned from what was a symmetrical triangle into a bullish falling wedge. Once we confirm out of this wedge (as well as bitcoin of course... with btc goes everyone), there is MAJOR upside that I personally do not want to miss out on.
The Bull News:
MACD Divergences have finally swung in our favor! My chart is of the 1 Hour MACD (note, its the 4 hour chart), which I find to be a very good indicator of longer term moves in ETH and BTC, although it can be a bit early to fire off.
Volume has picked up. While it was mostly to the downside at first, a great amount of buying volume has come back, We have a huge amount of buying pressure here at the 650ish line, as you can tell from the candle tails falling all the way back to the breakout above that level.
Our smaller (red line) bullish wedge pattern has been broken! It looks very bullish to me, with very few sellers left around.
The bear news:
A) The pushback zone. We tried to turn back from a wedge before at 775 and were rejected. Lets see how ETH handles it here.
B) The trendline of death. Until we get rid of this thing, were gonna have to contend with it. I have bad dreams about this thing.
C) Lack of huge bullish volume. While bullish volume is moderately good, there is definite room for improvement. I want big green volume candles under my breakouts, ETH!
Overall, I am more bullish then bearish. I will buy again on a fall back to 650-660, otherwise I will wait and see what develops from here.
Happy trading!
Disclaimer: This is for educational purposes only and is not meant to be investment advice. I am not an investment adviser, and I mostly make these to organize my charting ideas.
Note: You might want to zoom out a bit... I cant edit the chart view/size anymore (sad face)...
Looking into Ethereum again.
Like I mentioned in the last Ethereum update, my next buying opportunity was 650, with a tight stop. Thankfully, Ethereum bounced right there at the 200EMA, not falling further than 640!
If it continues rising, I will see how it reacts to the prior resistance at the 770-775 level.
After this, it only has the trend line of death to deal with. At this point, the total trend has turned from what was a symmetrical triangle into a bullish falling wedge. Once we confirm out of this wedge (as well as bitcoin of course... with btc goes everyone), there is MAJOR upside that I personally do not want to miss out on.
The Bull News:
MACD Divergences have finally swung in our favor! My chart is of the 1 Hour MACD (note, its the 4 hour chart), which I find to be a very good indicator of longer term moves in ETH and BTC, although it can be a bit early to fire off.
Volume has picked up. While it was mostly to the downside at first, a great amount of buying volume has come back, We have a huge amount of buying pressure here at the 650ish line, as you can tell from the candle tails falling all the way back to the breakout above that level.
Our smaller (red line) bullish wedge pattern has been broken! It looks very bullish to me, with very few sellers left around.
The bear news:
A) The pushback zone. We tried to turn back from a wedge before at 775 and were rejected. Lets see how ETH handles it here.
B) The trendline of death. Until we get rid of this thing, were gonna have to contend with it. I have bad dreams about this thing.
C) Lack of huge bullish volume. While bullish volume is moderately good, there is definite room for improvement. I want big green volume candles under my breakouts, ETH!
Overall, I am more bullish then bearish. I will buy again on a fall back to 650-660, otherwise I will wait and see what develops from here.
Happy trading!
Disclaimer: This is for educational purposes only and is not meant to be investment advice. I am not an investment adviser, and I mostly make these to organize my charting ideas.
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