Hi friends! Welcome to this update analysis on Ethereum! Let's get right to it! Looking at the four hour chart, you can see that ETH has produced a strong rally above the downtrend channel (in blue.) Since then, price has consolidated in a bull flag above the top of the channel, and above the 20 EMA (in blue.) So, we can see that there are several changes that have emerged, that paint a bullish picture. We have a breakout above the downtrend channel, a bull flag, we're trading above the 20 and 50 EMAs, and price appears to have formed a rounded bottom type formation, around 360.
However, I'm still very cautious of this action. It does look nice, but I need to see some more evidence of sustainability. Now, there are some short term trade setups here. For educational purposes, you could go long on a breakout from the bull flag, with targets of 565.54, and then the 1200 EMA (in purple) which represents the 200 EMA on the daily chart. Or, you could wait to see if a breakdown back below the channel emerges, in which case it would be a fantastic shorting opportunity. Personally, I am neutral on this market, until I see more signs of sustainability. As another alternative, if this flag fails, and ETH falls to retest the top of the downtrend channel, it would be a very bullish sign to see a hold on the top of the channel. So, that would be a technical buy signal as well. Those are the trade setups that are worth waiting for.
On the MACD, you can see that it has formed a bearish crossover, as the volume dies off a bit, but those things are normal to see during a bull flag consolidation. With that said, if the flag breaks out, that would be a very positive sign, and 565.54 would be in the cards. Right about now, the haters would be saying "see, he's calling both directions in the market!" I'm not calling either direction. I'm showing you a formation, and I'm telling you where we're likely to go, once this formation breaks. That's what analysis and trading are all about. They're about identifying patterns, and determining entry and exit points based on them. That's exactly what I've done.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
The reason I like you is because you show that trading is NOT about predicting but about RISK MANAGEMENT!!! I lost so money as a noob trying to "predict" and following people who claim to know the future. Anyone who b*tches at you for identifying multiple possibilities is a moron. Keep up the good work :)
DDT71
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Magic, since BTC, ETH, LTC, and almost the crypto universe move together, are you becoming bullish on ETH but still leaning bearish on BTC? I know you're officially "neutral", but in your TA do you look at them all as a family or not? If, for example, one were to think it wise to go long on ETH to hopefully 565, wouldn't that suggest they go long on BTC and LTC at the same time?
RexItUp
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@DDT71, It's a weird marketing thing MPC does. Everyone know all the coins just do the same thing in tandem, but by publishing slighty different POVs on all of them in parallel his brand gets more airtime. It's kind of funny reading the same thing 3x over and over. I imagine its gotta be tiring for him/her to write.
dRends35
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@RexItUp, Salty. Lots of people saying ETH looking bullish. I don't get why if you're view is so bleak, why are you even here, lol
RexItUp
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@dRends35, I'm actually like 90% Eth right now. Not salty at all. Just explaining why I think MPC does multiple updates even though all three of the big coins generally move in tandem against USD.
CB58
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@RexItUp, Do you wonder what motivates an individual to do this on a daily basis ?
@RexItUp, Are you serious when eth hit $1440, btc was going down. They don't always move in tandem.
RexItUp
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@biplav32, They don't always, correct. But they mostly do. They've basically all moved identically in direction vs. USD since December or so until the next big BTC move.