Hi friends! Let's take a look at Ethereum! In my last post, we reviewed the bear flag at the top of the chart, (in black,) and how ETH had fallen to the 50 EMA (in orange.) I emphasized how important it is for ETH to hold the 50 EMA, and so far, the bulls are defending it well. We can see that a small bounce occurred, from the 50 EMA, and prices have now climbed above the 20 EMA (in blue.) Additionally, we can see the MACD is curling up toward the signal line, possibly to form a bullish cross. There are a lot of traders and analysts on tradingview, who are saying that this is a buying opportunity. Personally, I would like to see more bullish evidence, before taking a new long position in this market. Looking at the overall structure of ETH, you can see that it may be forming a head and shoulders pattern. On the recent rally off of the 50 EMA, volume has been weak, signaling an overall lack of interest in the move, so it wouldn't take much to turn ETH lower, to complete a right shoulder. I don't know about you, but when I have a possible head and shoulders pattern staring me in the face, it's just too risky to take a long position, and climb to the mountain tops, shouting that the bottom is in. The selling may have run it's course for now, or we could be experiencing a small relief rally in the crypto space, before things turn lower again. On the bullish side, this thing could break higher, and trade all the way up to the top of the green parallel channel. Personally, I don't think that is the most likely scenario. On the downside, watch for price action to return to the 50 EMA, to test the waters again. Please like, comment, follow, and share on social media. This has been your fearless market guide — your virtual buddy. MPC out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-