TL:DR - bearish descending triangle formed, price objective tentatively $525.
This is the Eth:USD chart with 1d candles. My swing trade closed at a small loss, fortunately my position was small. Some are calling it a Head and Shoulders, I certainly now see a descending triangle formation since 5/6 which is indicative of a local top. Price target is $525-ish which is conveniently close to a major support zone.
The descending triangle looks very valid as volume has dropped throughout this time. Expect to see a quick break to the downside with on high volume in the next 24 hours. We should then fall to $600. Typically after a breakout from a descending triangle we see a retest of the former support around $650 which becomes resistance. Then expect a further fall to $525. $525 is the price objective as measured from he top of the candle on 5/7 to the bottom of the flat trendline, about 135 points.
Of course these signals do occasionally fall apart, but these seems the most likely scenario now. The other scenario, if you draw the trendline off of the intraday lows as opposed to the closing lows, is this could be a symmetrical triangle which would signal for a bullish breakout soon. If this is the case then expect a bounce to the upside soon followed by a breakout with a price target of $750 or so. Again, I'm more apt to call this a descending triangle but if I am wrong I would like to be prepared.
***This is not investing advice. I am not an investing professional. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
This is the Eth:USD chart with 1d candles. My swing trade closed at a small loss, fortunately my position was small. Some are calling it a Head and Shoulders, I certainly now see a descending triangle formation since 5/6 which is indicative of a local top. Price target is $525-ish which is conveniently close to a major support zone.
The descending triangle looks very valid as volume has dropped throughout this time. Expect to see a quick break to the downside with on high volume in the next 24 hours. We should then fall to $600. Typically after a breakout from a descending triangle we see a retest of the former support around $650 which becomes resistance. Then expect a further fall to $525. $525 is the price objective as measured from he top of the candle on 5/7 to the bottom of the flat trendline, about 135 points.
Of course these signals do occasionally fall apart, but these seems the most likely scenario now. The other scenario, if you draw the trendline off of the intraday lows as opposed to the closing lows, is this could be a symmetrical triangle which would signal for a bullish breakout soon. If this is the case then expect a bounce to the upside soon followed by a breakout with a price target of $750 or so. Again, I'm more apt to call this a descending triangle but if I am wrong I would like to be prepared.
***This is not investing advice. I am not an investing professional. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
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