I thought earlier this morning that ETH/USD might be setting up for a trip to test support in the 420's or low 430's. I may have been wrong. Snapping parallel trend line to the tan line that clearly shows the last two short term tops, it appears that the weakness this morning could be nothing more than the second data point in the channel's support line.
Of course, this would ignore yesterday's lows in the 380's altogether so you have to ask yourself if there is precedent for that. The answer would be 'yes'. Though usually seen in longer term charts, the extreme lows on a chart, particularly when looking at an inverted head and shoulders pattern that is deep, are at times NOT a part of the longer term channel that arises from the bottom. This has happened in the S&P 500 chart at important bottoms. Of course, this is NOT an 'important' bottom. It is just a back test. But the same thing could hold true. If this IS the right read, then this morning's lows would be the lows for the day and we start to head for new short term highs to mount an attack on 480.
Or... maybe I am overthinking this. Still wanted to share.
Of course, this would ignore yesterday's lows in the 380's altogether so you have to ask yourself if there is precedent for that. The answer would be 'yes'. Though usually seen in longer term charts, the extreme lows on a chart, particularly when looking at an inverted head and shoulders pattern that is deep, are at times NOT a part of the longer term channel that arises from the bottom. This has happened in the S&P 500 chart at important bottoms. Of course, this is NOT an 'important' bottom. It is just a back test. But the same thing could hold true. If this IS the right read, then this morning's lows would be the lows for the day and we start to head for new short term highs to mount an attack on 480.
Or... maybe I am overthinking this. Still wanted to share.