ETHUSD Triangle: Watch For Support Zone 258 to 250.

6 Jul 2017

ETHUSD: Price is in a consolidation. Within the context of a broader bullish trend, these are usually continuation patterns. I am still bullish and prefer to buy at supports and hold for a broader target.

At the moment this market is showing signs of minor bearish momentum confirmed by the lower highs made at a key resistance area of 273 (This level has been in play as a major support previously). A reasonable retracement is a move into the 258 to 250 area. It is wide, but there are plenty of minor supports to reverse from. If price falls below 250, the next major support area is in the mid to low 240s. I would look for stabilization there before taking any action. The key level that will negate the bullish scenario is a break below the 229 support. Trading back into the low 220s is a serious sign of weakness and for me, a good reason to stay out and reevaluate.

If a reversal pattern appears and validates within the 250 to 258 area, I am looking for longs. My risk will be measured from the 250 low. My conservative target is 278 (T1) and more aggressive target is 292 (T2) and my over the top target is 309 (T3) because this market will really need to have a lot of enthusiasm behind it to see that price again. It's possible, but not likely in the next couple of days in this low activity environment.