A Pullback to Test Support where Resistancce Used to be is Norma
Nobody like to witness a sharp pullback when they are on the long side of the trade. Pullbacks are sometimes the swiftest and most precipitous declines one will ever see in the markets. I believe this is what ETH/USD is going through right now.
This chart shows a fairly clear line that used to be resistance (red line that is almost horizontal). ETH/USD broke out of this range last week then made a brief foray OVER 500 just yesterday. Now it is back UINDER 400. I cannot be too certain that my upper red line is exactly right, but I think it is very close. Once we got above this line it is VERY TYPICAL behavior to see such a line revisited for a check of support and as mentioned, such a revisit often happens with lightning speed and with ferocious intensity.
To put it in a nutshell, the target price of 1000+ is not in any way invalidated by this sudden and swift decline. The key will be to generally stay NORTH of the 380's and to start to see signs of a reversal building that should take us back over 500 in earnest and for a long time.
This chart shows a fairly clear line that used to be resistance (red line that is almost horizontal). ETH/USD broke out of this range last week then made a brief foray OVER 500 just yesterday. Now it is back UINDER 400. I cannot be too certain that my upper red line is exactly right, but I think it is very close. Once we got above this line it is VERY TYPICAL behavior to see such a line revisited for a check of support and as mentioned, such a revisit often happens with lightning speed and with ferocious intensity.
To put it in a nutshell, the target price of 1000+ is not in any way invalidated by this sudden and swift decline. The key will be to generally stay NORTH of the 380's and to start to see signs of a reversal building that should take us back over 500 in earnest and for a long time.
Comment:
ETH has fulfilled what the chart indicated about 5 weeks ago.
Who says charts do not help with cryptocurrencies?
Who says charts do not help with cryptocurrencies?
Looks like a small inverted head and shoulders was built right where one would expect. Time will tell. The good news is - the way these things move in a heartbeat, we could know in an hour what might take an equity a day or more.