Hi friends! Welcome to this update analysis on Ethereum! Jumping right into the chart, we can see that several things have happened. First off, ETH has moved higher than I had anticipated, with regards to the right shoulder of head and shoulders
pattern that I proposed. This is a nice thing to see, for the bulls, but it doesn't yet negate the possibility of a head and shoudlers pattern. To illustrate this, I have drawn an alternate right shoulder (in yellow) on the chart. Technically, in order for the head and shoulders
pattern to be negated, a sustained breakout needs to occur over the previous high, which is the highest point of the head. Looking at the recent price action, we can see that it is quite strong, as ETH is currently testing the previous high. A sustained breakout above that level, would likely send this market much higher, possibly above the rising green parallel channel
and into uncharted territory. We can see that volume
has been decreasing, and so has the momentum on the MACD
, which is indicative of exhaustion, in this recent push higher. On the downside, a failed attempt to break above the previous high, will likely send this market lower. Initial support will likely be found at the 20 EMA
(in blue.) This has been your friendly market legend — MPC! Please follow, comment, like, and share on social media.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***