Greetings. The plan is simple Price action was in a rising wedge and the formation would have been a channel except for the bulls were causing it to wedge up instead of the bears causing the wedge to break down. Think of wedges as channels except for one party, buyers or sellers, has a lot more power. The bias has been bullish due to the inverted head and shoulders on ETHBTC some of us have been hollering about for months
Price action has popped out and is doing its first test to flip the previous resistance into support, meaning the blue trendline. I has it dotted because it has a chance of being very permeable on any future retest.
Swing traders and day traders like me will be putting some risk on looking for a pop. The technical place for this trend to end will be the Hight of the wedge. Bulkowski can show you how to calculate for over and underperformance. From there there will be a secondary test of the blue trend line and if/when that happens successfully there will be a massive parabolic move.
Have a look at my template for this idea, the price action LINKBTC. This is on a higher time frame so the prep for breach isn't visible But the high points are.
In Summation, very soon ETHUSD will pop up and retest the blue line. If that retest is successful ETHUSD may never return to the 1600-1700 level again. Margin traders beware and investors should have a bit more confidence. Basic trading rules apply and I am not a financial advisor.
Please see the linked comments if you want a bigger picture on ETHUSD.
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For the bearish case here is the target if this wedge breaks down. Don't forget risk management.
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ETHUSD is at a do or die moment right now. It needs to get back up on support or the price will take a serious stropping.
@CryptoTrader2022, I can't be always bullish in the short term because 50% corrections are the norm in crypto. I can't be blown out by some green candle with a long shadow due to poor risk management.
CryptoTrader2022
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So, if the ETH retest is successful, how many months will it take to revisit the 21 MA / EMA? ETH ALWAYS retraces to the 21 EMA / MA, and you're saying that if it pasts the test, we can see blue skies for like... a very long time? Wow.
This_Guhy
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@CryptoTrader2022, I think we will have months of mostly green candles on ETHUSD and ETHBTC. Timing isn't my strong suit yet.
CryptoTrader2022
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@This_Guhy, No, the billionaires are going to collect their profits and sell the ETH they've been buying for more than a year to the little guy. They have to pay their investors - annually. So, they'll also use the paper market (ETH futures) to further their mission. This is all very easy stuff to see coming, lol.
CryptoTrader2022
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@This_Guhy, by the way, there is a way to profit from all this. You don't have to be long all the time... options + shorting is a great way to capitalize like a billionaire will during this coming down trend.