Don't get surprised if ETH plummets to 1K
Actualizado
ETH made an incredible relief rally from a bottom of 880$ to spikes above 1760$ and it means incredible returns (100%) for investors that risked capital when everyone believed ETH was heading to 500$. It's been an insane rally and ETH surpased BTC in gains but now market might correct.
Trend analysis indicates that the trend is beginning to be tired. Biggest wave seems to be completed and corrected (3 to 4), and now the price is in its last impulse with decreasing volume. It could even spike the price close to 1900$, triggering many stop loss of short positions, but from trend analysis perspective it is hard to believe that price can continue to rise up.
Observing the formation we can find a megaphone (broadening triangle) and this pattern occurs when there is disagreement between investors and high volatility too. The fixed volume range profile reafirms that 1100$ is an interesting point to buyers and sellers.
This idea is more like a warning than a trading idea, entering to the market in short position right now would be aggresive but the idea also shows the risks about being in long positions. From trend analysis perspective is needed to wait the confirmation of the correction trend to enter safer short positions. In next posts I will follow the correction trend if that correction happens. A rebound at fibonacci levels might confirm the entry for short positions.
The best trader doesn't think in how much won today, this week or month, thinks in which is the best next option to trade.
Trend analysis indicates that the trend is beginning to be tired. Biggest wave seems to be completed and corrected (3 to 4), and now the price is in its last impulse with decreasing volume. It could even spike the price close to 1900$, triggering many stop loss of short positions, but from trend analysis perspective it is hard to believe that price can continue to rise up.
Observing the formation we can find a megaphone (broadening triangle) and this pattern occurs when there is disagreement between investors and high volatility too. The fixed volume range profile reafirms that 1100$ is an interesting point to buyers and sellers.
This idea is more like a warning than a trading idea, entering to the market in short position right now would be aggresive but the idea also shows the risks about being in long positions. From trend analysis perspective is needed to wait the confirmation of the correction trend to enter safer short positions. In next posts I will follow the correction trend if that correction happens. A rebound at fibonacci levels might confirm the entry for short positions.
The best trader doesn't think in how much won today, this week or month, thinks in which is the best next option to trade.
Comentarios
This is the most optimistic way to see the pattern. As I said, confirmations are still pending
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