ETHUSD Psychological Resistance and the Ascending Channel Retest

In this idea, I will break down the important price levels for ETH/USD based on human psychology and explain why the confluence with the ascending channel will cause the price to drop after hitting $200.

After ETH/USD broke out of this ascending parallel channel we have seen a quick retracement to the beautiful psychological level of $180.

As I explained in my previous idea we are able to identify very clean levels for Ethereum that seem to hold value again and again. This time the very natural location of 180 gave support to the price.

You can have a look here with a much more in-depth view on the psychological levels for support and resistance


After we've seen a second bounce on the $180 level, I expect the price to move to the psychological resistance of $200. Since there is bearish confluence here on the retest of the ascending channels bottom support line and the psychological resistance, I expect the price will drop again directly after. Both of these technicals signal a probable bearish movement directly after hitting this area.

If we do see a break-out, it can be of massive volatility, like we've seen earlier with psychological resistance breakouts. Especially around the $200 level.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!