Editor’s note: This analysis was written in the hours leading up to the Ethereum hard fork.
Well, as expected, ethereum has turned up, though it was bit sooner than I had been expecting. But this is hardly reason to complain. :)
Still, the rather dramatic rise led me to want to take a closer look at ethereum’s chart, so I drilled down a bit deeper and opened a 4-hour chart. (If you recall, up to this point we have looked at the daily and the 8-hour charts.)
Here is a bear setup from the high, using the high of the retracement to size my setup.
Price moved sideways until it hit the 5th arc, and has rallied 75 cents since then. Truly amazing. I’ve seen how price moves according to geometry a million times, but it never ceases to amaze me.
It is clear that the arc has provided strong support, and we ought to be looking to add to any long positions.
At this point I suspect that the bear setup we are looking at has “expired” so to speak. We really need to be looking at a bull setup now. So lets look at one from the recent low:
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.
Image from Shutterstock.