Lets take a look at ETH from longer term weekly perspective . In previous bull cycle ETH consolidated in triangle pattern and weekly MA21 served as support line. When ETH started downfall, MA21 acted as main resistance zone.
Now we are in similar situation. Price broke MA21 in a bull run and felt back to it again acting as support now. Will the price go up or down? MACD indicator shows signs of trend reversal while DMI indicator still favors bulls with ADX line above 25 points showing bulls are still in control for now
I see following options sorted from most probable to least.
1.) If the cycle repeats itself, we should see pennant pattern forming confirming price consolidation leading the price to be locked between 175 and 300 EUR for the majority of 3rd quarter of the year and it can lead to:
1a.) New bull run and price rising to 300 and 400 EUR sometimes in 4th quarter
1b)Trend reversal and price falling back to 160 EUR acting as new support.
2.) Price reversal is confirmed and price will fall to 160 EUR acting as new support.
3.) No pennant chart patter will be confirmed and price will quickly recover back to 300 EUR and goes higher by the end of august.
As mentioned above I believe new pennant chart patter is forming and we can have some nice trading opportunity trading the upcoming waves.
I would love to know your opinion. Let me know in comments what do you think.
Now we are in similar situation. Price broke MA21 in a bull run and felt back to it again acting as support now. Will the price go up or down? MACD indicator shows signs of trend reversal while DMI indicator still favors bulls with ADX line above 25 points showing bulls are still in control for now
I see following options sorted from most probable to least.
1.) If the cycle repeats itself, we should see pennant pattern forming confirming price consolidation leading the price to be locked between 175 and 300 EUR for the majority of 3rd quarter of the year and it can lead to:
1a.) New bull run and price rising to 300 and 400 EUR sometimes in 4th quarter
1b)Trend reversal and price falling back to 160 EUR acting as new support.
2.) Price reversal is confirmed and price will fall to 160 EUR acting as new support.
3.) No pennant chart patter will be confirmed and price will quickly recover back to 300 EUR and goes higher by the end of august.
As mentioned above I believe new pennant chart patter is forming and we can have some nice trading opportunity trading the upcoming waves.
I would love to know your opinion. Let me know in comments what do you think.