22% Fall, After My H&S Warning on ETHEREUM! (ETH)

Hi friends! Welcome to this update analysis on Ethereum! Let's get right to it. Looking at the four hour chart, you can see that ETH broke down from the bear flag formation that it made after falling from the head and shoulders pattern. Interestingly, we can see that the bear flag breakdown caught huge support off of the 642.92 trendline that I put out in the last analysis. You can see that the downside head and shoulders + bear flag target hasn't been reached, and that's fine. You have to understand that targets are not some certain thing that is the be-all end-all. They are general guidelines, that give an indication as to where a potential move could end up. This particular target, was generated from the size and locations of the head and shoulders and the bear flag formation. As I always say, patterns don't always rally or correct to their full potential. That doesn't mean that the downside target wont be met. Looking at the current price action, we can see that ETH rallied hard off of the 642 level, but it's finding what appears to be substantial resistance at the bottom of the bear flag. Perhaps this level will act as resistance, sending ETH down toward the 592 price target. You can see that the 20 EMA (in blue) is also up in the mix, and ETH is printing a nice gravestone doji at the moment. I don't know if it will close with that, but that's what I see right now. Overall, there is now a major amount of resistance above ETH. You have the bear flag, the 20 EMA, the 50 EMA, the neckline of the head and shoulders pattern, and the top of the downtrend channel (in blue.) So, you can see that even if ETH catches some wind in it's sails, there are a lot of obstacles in it's immediate upward path. However, on the downside, if ETH breaks back below the 618, we could see another wave of selling. I don't care how oversold it looks, things can remain in oversold territory for extended periods of time. With that said, we can see that the MACD has formed a big bullish crossover, so all is not grim.

Overall, we just got rejected at the top of the downtrend channel (on 3/5) in a big way. Since then, ETH has been plummeting, but a sharp rally has materialized in the past 24 hours, which has produced a bullish crossover on the MACD. There is more overhead resistance, than downside support, so the overall bias remains to the downside.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

-JD-

Komen:

Original Head and Shoulders Warning: