Hi friends! Welcome to this update analysis on Ethereum! Before you, I have the daily ETH chart. I've switched to the daily, so that we can zoom out, and take a broader look at ETH, to determine the likely outcome, of the longer term picture. And I have to say, the technical prognosis is grim. First off, we have a massive head and shoulders pattern forming on the chart, which is outlined in pink. The sheer size of this pattern, actually suggests a retrace to zero, assuming that it would correct to it's full potential. Actually, the height of the head would produce a full scale correction into negative territory, but since crypto can't be worth negative dollars, we'll just call it zero. Now I know people are probably shouting at their computers, or even ripping out their own hair out at the aforementioned statement, but if you read any literature on calculating the price target of a head and shoulders pattern, you will see why my statement is legitimate. Of course, patterns do not always rally or correct to their full potential. We may see a breakdown of the large head and shoulders pattern, that only sends the price down to the rising black trendline. Therefore, a breakdown would have occurred, but not to the full potential of the head and shoulders pattern.
Looking at the recent price action inside of the right shoulder, you can see that a smaller head and shoulders was formed at the top of it (in red,) which broke down into a bear flag, that ETH is still currently trading in. So, we can see that there is a continuation of bearish patterns, inside of the right shoulder of an even larger head and shoulders pattern. It's obvious to see that a breakdown seems imminent. The neckline of the big head and shoulders pattern is at the 565.50 level, where I have the "bear flag target." Judging by the formations that have been created, that level should be reached, and surpassed.
You can see that ETH remains trapped inside of a large downtrend channel (in blue.) If ETH stays inside of the channel, we will see a test of the black rising trendline by April 18th at the latest, and that is a 100% certainty. So, assuming that ETH stays inside of the downtrend channel, a test of the black trendline should happen within a month or so. Whenever ETH does test that level, assuming we are inside of the downtrend channel, the price will be at most 415. In other words, in the best case scenario, ETH is facing a 40% drop, from the current levels, at a bare minimum, by April 18th, if we stay inside of the downtrend channel. Let that marinate.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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.***
Hodlers are so blind. It's disgusting, and it will be the death of this market. The problem is that the crypto space is filled with uneducated investors, who want to HOLD ON FOR DEAR LIFE! That's the stupidest, worst investment strategy in the entire history of investing. Eventually, you'll be holding on for DEAR DEATH, and that may be what you're doing right now.
-Magic-
streetgainer
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@MagicPoopCannon, HODL doesn’t literally mean hold for life, it’s a euphemism on not panic selling during down trends and holding for full potential.
Wait a minute!!!.. I know who you are... you’re that guy who paid for pizza with his bitcoin a few years back, right?... no? not you?., then you must be the guy who sold his Apple share of the company for $800 in 1976?.., no? not you?.., ok ok, I think I got it now, I heard Jeff Bezos talking about you, it has to be you.., you sold your Amazon stock for $7 a share some years ago right? You got like 70k before capital gains took like 40%, that has to be you. Great to meet you man.
MagicPoopCannon
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@streetgainer, No, I'm the guy on the other side of all of your losing trades, taking your money like candy from a baby. That's who I am.
-Magic-
davidtcc
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@MagicPoopCannon, what money? We are not fucking selling :). You right, most of us don't have a clue about TA or know little, what can be even more dangerous, but we are not traders, we are investors. The only reason because I follow all this rollercoaster is because if I can I try to get a good entry point. And I really thank for your kindness sharing your analysis with us, but man those manners...
@MagicPoopCannon, You might also be McAfee himself. Your love for shit, the arrogance and the megalomaniac comments point straight to that insane fellow. I have seen many analysts getting rekted in here so often. The good thing is that many of them have the balls to admit it...anyway good luck with your trades mate.
PS: I dont say that you are a bad analyst, I just dont like your rude style. By the way ETH will go down indeed...
cryptofool
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@MagicPoopCannon, Mr poop bombs. Your last H&S patters failed (BTC & XRP reversal H&S patterns that would take this coins higher). I was selling candy that time, is there a chance you bought me some? If so are you hodling or accepted the lose?
Litovel
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@streetgainer, You cannot compare those guys to Magic. Magic is not leaving the crypto market. He is trading. You buy and sell based on TA and hopefully make a profit or accumulate more coins.
BazsiBazsi
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@MagicPoopCannon, Wrong. Holding on is a means of waiting out the more wider adoption. The market would be way more stable if everyone would be holding, not panicking and selling
-Magic-