A few days back I opined in this space that ethereum might be poised to rally as it was challenging resistance which I thought might break. It turned out that the resistance in question, the 1×1 angle, held.
Here is a 2-day chart:
The red arrow shows where the market was at the time I wrote that piece. As you can see, the 1×1 was tested in 4 out of 5 successive 2-day candles, and was turned back each time. While a bit surprising that the angle survived so many assaults, it proves the adage that one should “never say never”, in this business.
As of this writing, price is sitting on the 1st arc support, where it has been for 2 candles (4 days). As far as I can see there is not much indication on this chart whether it will move up or down when it reaches the end of the square in a few more days. However, it is a concern that the arc pair failed twice in the recent past (blue arrow).
Let’s look at an 8-hour chart for more insight:
This chart seems to suggest that the sideways movement of the past few days might be nearing an end soon, as it is going to test the 2nd arc of the 3rd pair in a day or two.
I note that the arc pair was conquered briefly at the swing high (blue arrow). This suggests that the arc is vulnerable. Indeed, the 1st arc of the pair has been conquered several times in the recent past. It is the 2nd arc of the pair which has caused ETH bulls so much frustration in the recent past. That 2nd arc will be tested again quite soon. Will it yield to buying pressure on this attempt? My guess is that it will. However, until it actually does so, and we get a closed green candle above that arc, we won’t have a buying signal. So my advice is, don’t be impatient and enter the long trade before that confirmation is given.
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.