HI Traders! On today's post I will take a look at Ethereum. Over the past few weeks trading has come to a slow. The volatility is drying up and that only means one thing. The next major macro move is being set up.
Over the weekend Ethereum tested a block of resistance between 189 - 194. This block is relevant as it is the consolidation preceding the 56% drop that took place in March.
Support currently sits at 148 - 152. However, on a previous post I described that manner in which Ethereum was consolidating on support was resembling a potential set up for a reversal top formation. See below:
Pure speculation, but a Head and Shoulders formation is not our of the cards here. I also added a key a took I use when measuring the length in which a pattern may take place. I like to measure both shoulders on a head and shoulders. They should come close in time, though depending n various circumstances the right shoulder can be either longer or shorter.
THE FINAL WORD: Bollinger Bands
Given the lack of volatility and the recent swing high Ethereum has set, it is primed to retest support at $150. I would be cautious buying spot Ethereum or entering any long positions at these levels. I'd be interested in buying on support near 148 - 152 and reassess. Bollinger bands will become important in the coming week or two ahead as it is an indicator of when volatility will begin.
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Over the weekend Ethereum tested a block of resistance between 189 - 194. This block is relevant as it is the consolidation preceding the 56% drop that took place in March.
Support currently sits at 148 - 152. However, on a previous post I described that manner in which Ethereum was consolidating on support was resembling a potential set up for a reversal top formation. See below:
Pure speculation, but a Head and Shoulders formation is not our of the cards here. I also added a key a took I use when measuring the length in which a pattern may take place. I like to measure both shoulders on a head and shoulders. They should come close in time, though depending n various circumstances the right shoulder can be either longer or shorter.
THE FINAL WORD: Bollinger Bands
Given the lack of volatility and the recent swing high Ethereum has set, it is primed to retest support at $150. I would be cautious buying spot Ethereum or entering any long positions at these levels. I'd be interested in buying on support near 148 - 152 and reassess. Bollinger bands will become important in the coming week or two ahead as it is an indicator of when volatility will begin.
Please like and follow if you enjoyed this content!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.