ETHUSD Perspective And Levels: A Double Top Appears In Zone.

ETHUSD Update: Minor double top within projected resistance zone of 301 to 307 area while BTC hardly pulls back, but is still stuck within a much more significant resistance zone also.

Like I wrote about before, the selling structure has establishing itself, but there is no real catalyst to get these markets moving. Many people are asking why, or trying to find some kind of news or information to help explain this price action.

This double top formation will be confirmed once the recent low at 280 is taken out. There is also a minor support zone at the 286 to 291 (.618 of most recent bullish swing) is worth mentioning since small time frame reversal patterns can offer day trade opportunities in an area like this, but that is up to you and your trading plan. Based on the current structure, these supports are more likely to break rather than show reversals and are not worth the risk for any swing trades.

Price may hesitate at the current supports in the 286 area, 280 and even in the 260s, but the reason why I will not consider any reversal patterns for a swing trade is because in this context of a lower high, these levels are more likely to break.

I know that many participants, especially if they are in positions, scour the internet for any piece of information that can explain the current price action while price is telling us everything we need to know. When the balance of order flow is made up of sell orders (and that includes the hidden ones on the exchanges), over time, this activity will express itself in patterns. Patterns like the double top, or failed high.

Often these patterns will appear, days or weeks before some big news surprises the markets and that is when most people notice the obvious selling and think it started with the news event. The signs are present now, like I have been writing about, the only thing that is missing is the spark which can come out out of nowhere.

Besides this short term price action, I have been writing about the wave counts in both BTC and ETH markets, which appear to be at a bearish turning point also. The only thing that is holding these markets up is the persistent BTC strength, but this strength is no where near the same compared to how it was behaving the first time up to 5k.

In summary, the situation has not changed much except for an appearance of more bearish price action. The double top and lower high formation warn of oncoming support breaks, especially if there is something motivating the order flow. Like have written before, I am not taking any swing trade positions in this environment because the risk is too high compared to the potential reward based on my swing trade plan. It is just a matter of waiting, and waiting does not require any risk. Like they say flat is a position.

Comments and questions welcome.