Bitcoin has given up some it’s gains in the past 24 hours, but overall the chart has not changed in a few days. So lets take a peek at ethereum’s daily chart. Let’s start with a bear setup, and then we will look at a bull setup, to see if we can glean any information from the two charts that might give us a clue as to what might happen next in this asset:
After that spike low, this is really the smallest bear setup we can make from the high. A few points worth noting is that the 1st arc pair contained price for several months until a breakout was stopped by the 1×1 Gann angle from the high (45 degrees). That started a reversal that lasted until the spike low was stopped by the 2nd arc pair. Technically, bouncing off that arc pair was enough to signal an end to the correction. It is noteworthy that price did not penetrate the arc at all.
However, after it rebounded, price has remained trapped by the 1×1 angle. However, it is not being smacked down hard by the angle as it was before. Price is following the angle down, as if it is waiting for an opportunity to breakout again.
So let’s take a look at a bull setup from the low:
I for one have my finger on the trigger to execute a buy order in ethereum and/or ethxbt as soon as 2 things happen: A) price closes above the 1×1 on the bear setup, and B) closes above the 4th arc pair on the bull setup. I have a feeling both will happen in the very near future.
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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