After an incredible year of dominance gains, ETH finds itself lower in a possible ascending triangle. Compared to BTC's symmetrical triangle, which looks more like a bear flag than a recovery pattern, this may be a good sign for the market as a whole. With the not-so-new PoW environmental concerns, it's possible investors will begin looking to more environmentally friendly PoS projects. Could it be time for the fabled #Flippening? I won't hold my breath but it's not outside the realm of possibility.
However, without any volume nothing spectacular is going to happen.
However, without any volume nothing spectacular is going to happen.
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Could be headed towards the top of the range
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There is a break out with confirmation and price should move towards the 2800 area
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ETH has reached it's 2800 goal. However, we may have reached the end of influence for our falling wedge here. As for our flippening goals, price seems to be following BTC again which is currently battling resistance in it's symmetrical triangle. That's what we're seeing here with ETH as well now. Stalling too long here would signal a potential move back to the lower end of the triangle for both assets. On an upwards breakout, I urge waiting for confirmation (as difficult as it is). You won't always win by waiting but it substantially lowers risk while leaving possibility for great rewards. This recommendation is the same for downwards breakouts.
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ETH is now giving more credibility to the ascending triangle. However, this mid-term ascending wedge, which is slightly busted, could send prices back to the lower end of the range. Keep an eye on that intersecting support.
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Cautiously optimistic would define this structure. If we look at BTC, the symmetrical triangle has busted, giving the idea that ETH may not be the ascending triangle bulls would like it to be. Sometimes when a symmetrical triangle busts at the top the price can shoot out the other side. The risk reward ratio favors waiting on a swing, in other words, waiting for the mid-term pattern to complete before trading the hourly.
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Bitcoin's latest attempt at breaking the symmetrical triangle has failed and the possibility which was assumed yesterday is taking shape. ETH finds itself at the bottom of the range again. This time taking pressure from a complex head and shoulder where the price has fallen just below the potential neckline (solid cyan). Also note how price is now against horizontal support (dotted cyan). It is important to watch how it preforms here and not take an early entry. It may be profitable to enter on a push up from here as strength now would most likely send the price up into an upwards breakout. However, until that signal arises I think it's unwise to hold a position here. More over, there is a big upside potential to your rewards with minimal risk by waiting for this mid-term pattern to complete all together.
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A quick shakeout to 2560 and recovery above short term support into a small flag points towards the top of the range. Given there is currently little fundamental reason why this should not break upwards, I would say there is a decent possibility that this push could be the one that eventually leads above 2900. Coming back from the recent bottom shows a lot of strength.
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While it is more important to watch BTC during a breakout such as this, this idea was focused on if and/or how ETH could carry this market. It seems, at least for now, this isn't going to happen. What we are seeing now is the confirmation of a downward break. If you're still holding a mid-term position, this may be a good time to exit. While BTC still may travel upwards due to the multiple touches near 30k you will carry less risk by seeing if it breaks higher through resistance to find support. It is not important to have a lower target in mind yet because we're not trying to catch knives - that's dangerous, knives are sharp. We're looking for a recognizable pattern on resistance with bullish indicators and favorable fundamental conditions.