Ethereum Analysis v1.0 - Possible Double Bottom Scenario
Ethereum is currently facing heavy resistance from the upper trendline, moving averages, as well as the 0.5 Fib retracement level.
Unless Ethereum is able to break above those resistances in the coming days, a decently strong sell-off may occur. I would suggest to retain a portion of your Ethereum holdings, but also discontinue any further buying until movement or breakout of upper trendline occurs and the daily trend changes. A good level to restock some Ethereum would be the $80 level as it was the previous bottom, and it appears to have a lot of buying power, so a bounce from this level is very likely.
Short Term Statistics:
Price Moving Higher = 10% Possibility
Price Moving Sideways = 20% Possibility
Price Moving Lower = 70% Possibility
Levels to watch:
$80 - Previous Bottom as well as Fib-Retracement 1.272
$60 - Unlikely, but possible future bottom (Fib 1.618 of recent Low/High + Fib 1.272 of previous Low/High + Wave 5 Corrective Move)
Notes:
Weekly Stoch-RSI shows weakness in buying power, possible cross from overbought conditions could increase chances of a strong sell-off
BTCSHORTS may imply a drop in the price of BTC, which may lead to Ethereum heading lower as well
Unless Ethereum is able to break above those resistances in the coming days, a decently strong sell-off may occur. I would suggest to retain a portion of your Ethereum holdings, but also discontinue any further buying until movement or breakout of upper trendline occurs and the daily trend changes. A good level to restock some Ethereum would be the $80 level as it was the previous bottom, and it appears to have a lot of buying power, so a bounce from this level is very likely.
Short Term Statistics:
Price Moving Higher = 10% Possibility
Price Moving Sideways = 20% Possibility
Price Moving Lower = 70% Possibility
Levels to watch:
$80 - Previous Bottom as well as Fib-Retracement 1.272
$60 - Unlikely, but possible future bottom (Fib 1.618 of recent Low/High + Fib 1.272 of previous Low/High + Wave 5 Corrective Move)
Notes:
Weekly Stoch-RSI shows weakness in buying power, possible cross from overbought conditions could increase chances of a strong sell-off
BTCSHORTS may imply a drop in the price of BTC, which may lead to Ethereum heading lower as well
Comment:
Price is currently trading above the upper trendline of the triangle, but there isn't a significant amount of buying pressure. If volume does not increase in the coming days this may turn into a final fake-out before another price drop occurs.
Image of Stoch-RSI on the Weekly Timeframe
Levels to watch (Shorter Term: Few Days):
$120 - Possible, but risky support from lower trendline
$100 - Strong support/resistance zone with 7 touches
Buying at these levels may be profitable for day/swing traders, but if you're going for a long investment, I'd suggest waiting to see how the market plays out.