Hello All,
I find it important to notify everyone reading this that since I am considering a reversal throughout the whole market, and since BTC out performed all of the other major cryptocurrencies last year. If we are going into another uptrend, it is important to identify other possible cryptos that may have a stronger run than BTC if the goal is to maximize the return. (Although there are many valid reasons on why a person should aim to maximize returns such as risk).
In the chart presented here, there is a long term descending trendline, this descending trendline has been a the resistance of a descending triangle. The base of this triangle can be seen in the thick red bar. If this is a reversal of price action of ETH it would need to break out from the resistance of that descending trendline. IT is possible given that it is possible that this is a double bottom (it can be clearly seen on the weekly because both weekly candles have closed, in exact same support). The RSI also has a descending trendline which is not a positive sign. In most situations, I assume that the bears have the advantage in this situation. It is highly possible that there is a small movement towards 1850 to 1900 (~6%) which would not be enough for me to confidently say that ETH would be a better option than BTC.
Possible Price Action:
I do believe before we see a strong upward movement, we will see horizontal movement if price action can break that blue trendline, if not we will be experiencing another price drop in ETH:BTC. However, this may not mean there will be a great price drop between ETH:USD because it is possible that BTC obtains upwards moment. It is also possible that ETH makes USD gains, but BTC is outpacing it.
Happy Trading and don't forget to Stay Technical!
Descending Triangle and possible double bottom:
One thing I'd like to add is that price looks like it will drop some more, however, it does look like it is the beginning of accumulation.
Previous Analysis:
I find it important to notify everyone reading this that since I am considering a reversal throughout the whole market, and since BTC out performed all of the other major cryptocurrencies last year. If we are going into another uptrend, it is important to identify other possible cryptos that may have a stronger run than BTC if the goal is to maximize the return. (Although there are many valid reasons on why a person should aim to maximize returns such as risk).
In the chart presented here, there is a long term descending trendline, this descending trendline has been a the resistance of a descending triangle. The base of this triangle can be seen in the thick red bar. If this is a reversal of price action of ETH it would need to break out from the resistance of that descending trendline. IT is possible given that it is possible that this is a double bottom (it can be clearly seen on the weekly because both weekly candles have closed, in exact same support). The RSI also has a descending trendline which is not a positive sign. In most situations, I assume that the bears have the advantage in this situation. It is highly possible that there is a small movement towards 1850 to 1900 (~6%) which would not be enough for me to confidently say that ETH would be a better option than BTC.
Possible Price Action:
I do believe before we see a strong upward movement, we will see horizontal movement if price action can break that blue trendline, if not we will be experiencing another price drop in ETH:BTC. However, this may not mean there will be a great price drop between ETH:USD because it is possible that BTC obtains upwards moment. It is also possible that ETH makes USD gains, but BTC is outpacing it.
Happy Trading and don't forget to Stay Technical!
Descending Triangle and possible double bottom:
Previous Analysis:
