ETH Backtest held -- Lets get some upside - Target $350 then $400
ETHUSD
daily
Last week and over the weekend we were tracking the bull flag consolidation on ETHUSD which finally broke out reaching $347 before pulling back. The follow up reversal candlestick effectively backtested the breakout (price verification) and was followed up by another green candle stick and today we have opened green and appear to be setting a higher low. This is bullish price action.
4 hour
On the 4 hour chart we are watching for more volume to drive the stochastic RSI into uptrend to push through the next area of resistance approximately $336 which will give way to another test of $350.
1 hour
Notice the smooth consistent angle of ascent on the 1 hour stochastic RSI after the price tested and held the 1 hour 30 ema- this is indicative of low volatility. This is causing a bullish MACD cross and we look for buying to continue to push this higher.
ETH:BTC - Cup and Handle Formation 1 Hour
ETH priced in BTC has formed what is known as a cup and handle. Cupping can be very bullish and is indicative of accumulation. Once a cup is formed, generally the breakout is back tested making a handle. Particularily important is this backtest has held the historic trendline that extends off of ETH:BTC tops while it was sub 100. Here we look for more bullish momentum to break us out of the channel - this is condusive of stronger price action in the ETH:USD pairing.
ETH:BTC - Daily Time Frame
ETH:BTC on a daily time frame held on to the 170 day moving average for nearly a week, the price was pinned before finally breaking back above that historic trendline. Now ETH:BTC on the daily time frame is backtesting the re-capture of this trendline, confirming it as support.
TRADE: Enter here, set stop at $320
ALTERNATIVE: Enter in 2 scales, half here, half if it pulls back, set a loose stop loss on your first entry, just in case a dip turns into selling.
RISK TRADE: Short bitcoin - probably not a safe play.
On another note, that LTC would soon break out, it did, we are verifying price, back testing. If you want to hop on wait for bullish volume to come in. Those who followed the trade have either locked in the gains or raised their stop loss and now have ample buffer. I remain very Bullish on LTC based on the chart alone. Check my blog post, ETH LTC BCC trade ideas, for a more detailed analysis!
BTC failed to do anything with the segwit and as mentioned yesterday I am looking for a lower high. BTC appears to be forming a head and shoulders pattern on the 1 hour chart with a very bearish moving averag cross coming, 170dma below 68 ema (green below grey). Price targets and thresholds are still intact, looking for another test and failure of $3600. Check my blog post, BTC Point of Inflection for a more detailed analysis!
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Weekly Overview
ETHUSD
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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and I could give a fuck.