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 we're zoomed in to the right shoulder of the large head and shoulders pattern on the chart. This is because we have an interesting development that is emerging right now. As you can see, ETH has rallied with the rest of the crypto space, and it is actually trading slightly above the neckline resistance (in red.) Now that we're back inside of the right shoulder, we could see a continuation into higher resistance levels, such as the 50 EMA (in orange) and then the 1200 EMA (in purple.) If you're wondering why I've got the 1200 EMA up, it's because that is the 200 EMA on the daily chart. The 200 EMA of the hourly chart is above the downtrend channel (in blue) so the daily 200 EMA is a level that could come into play in the near term, should ETH hold support above the neckline of the head and shoulders pattern. Interestingly, you can see that the 1200 EMA is converging with a resistance level around 640.50, so that could be problematic if/when ETH gets there. For now, the 50 EMA (in orange) is the immediate resistance level.
On the chart, we have a clear short-term reversal formation. After the bottom on 3/18, ETH rallied with the rest of the market, forming a bull flag. Now, you can see that we've broken out of that bull flag, and above the neckline resistance in the process. You can see that the projection of the bull flag extends above the 1200 EMA, so this flag is capable of yielding some nice upside, particularly if we get above the 50 EMA, which is being closed on as I write this. On the downside, a break back below the red neckline support would be very bearish. A confirmation above the 50 EMA (in orange) will put the 1200 EMA in the sights of ETH. Beyond that, we're likely to test the top of the downtrend channel.
If you're wondering what happened to the large head and shoulders breakdown, well, perhaps that's all we'll see. Or perhaps this is a bull trap, before all hell breaks loose. Honestly, we can't currently know for sure. We need to see more data to know, so keep your eyes on the red neckline support. If we break back below that, that would be an indication of a bull trap. Above the 50 EMA, the potential for higher prices will increase. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
@streetgainer, Oh really? That's funny, because I'm about to become the most viewed trader in the entire history of this site. haha
streetgainer
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@MagicPoopCannon, Don't worry. TV will also soon crack down on the manufactured view counts.
You see, You can fool some, sometimes, but you can't fool all, all the time. ;)
Also, when are you going to finally put some skin in the game. OTHER THAN your 1 LTC trade?
Don't answer. GL!!
MagicPoopCannon
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@streetgainer, Come to think of it, I bet about 50% of those views were from YOU! Thanks for the support, buddy.
streetgainer
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Lol, those views. LOL!!... nope, not from me. You sure most of them weren't from you?...LOL!!
mrbrown66
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@streetgainer, I have to revisit MPC's post 3-4 times in order to fully appreciate the work thats going on here. So Im probably not helping matters with the number of views.
Crypto_Lad
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Are we coming down now?
DILHOL3
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Just traded this $15 move following the flag breakout + confirmation. I really appreciate your analysis
Litovel
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Thank you Magic for your chart. You saved me money. I had a stop just bellow the red neckline.