This is the third comment I have made on the ETH/USD chart over the last week. The reason? There are three noteworthy chart developments. Quickly, here they are...
1. ETH/USD made a strong move over a trend line that had developed after its very first move over 400 this past Summer. This trend line was part of a consolidation pattern that projects, with that breakout, a target that is HIGHER than 1000.
2. After this breakout, there was a ferocious pullback that took place yesterday. In yesterday's comments, I mentioned that the 380's should hold and that we should be on the lookout for a bottoming pattern to confirm that this was nothing more than a garden variety pullback.
3. That brings us to today. Today's chart shows an inverted head and shoulders pattern that has broken out over the last half hour or so. I saw this pattern last night before I went to bed (EST) and I thought to myself "If this pattern develops normally, it should break out right around when I get up tomorrow morning". Bingo. We are now in a clear breakout. The target from this pattern is around 505. Since that is nothing really compared to the 1000+ target, this pattern mostly confirms that ETH/USD's wicked sell-off yesterday was, indeed, just a pullback and a buying opportunity for those who realized it. Sadly, the lows yesterday shook out a lot of people.
Expect some resistance along the way to be sure as we start to mount an attack on 500. Going from memory (when I type these comments the chart disappears...), 480 looks like a spot where resistance could be found.
1. ETH/USD made a strong move over a trend line that had developed after its very first move over 400 this past Summer. This trend line was part of a consolidation pattern that projects, with that breakout, a target that is HIGHER than 1000.
2. After this breakout, there was a ferocious pullback that took place yesterday. In yesterday's comments, I mentioned that the 380's should hold and that we should be on the lookout for a bottoming pattern to confirm that this was nothing more than a garden variety pullback.
3. That brings us to today. Today's chart shows an inverted head and shoulders pattern that has broken out over the last half hour or so. I saw this pattern last night before I went to bed (EST) and I thought to myself "If this pattern develops normally, it should break out right around when I get up tomorrow morning". Bingo. We are now in a clear breakout. The target from this pattern is around 505. Since that is nothing really compared to the 1000+ target, this pattern mostly confirms that ETH/USD's wicked sell-off yesterday was, indeed, just a pullback and a buying opportunity for those who realized it. Sadly, the lows yesterday shook out a lot of people.
Expect some resistance along the way to be sure as we start to mount an attack on 500. Going from memory (when I type these comments the chart disappears...), 480 looks like a spot where resistance could be found.
This changes nothing in the big picture at all.