Those of you who read yesterday’s column will recall that the daily chart was looking rather bearish in the short term. Indeed, I ended the article by speculating that I was considering taking a short position in the asset as a result of the chart. So, even though the market has been rather quiet today, let’s look at the ethereum charts again. Let’s start with the daily chart, with a look at the most reasonable bear setup from the high:
Remembering that the market is fractal, lets look at the daily chart again, this time with a smaller bear setup from the mid-July high. Here we see price traversing the 3rd arc pair, below the 1st square, which is now resistance. This is also bearish, and suggests the selloff could resume in a day or two, once pricetime exits the arc pair.
Speaking for myself then, the conclusion I draw is that I will wait to see a close BELOW support on this last setup (~ $11.22). If and when I see that support break, I will short this chart…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
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Last modified: June 10, 2020 2:43 PM UTC