Over the last weekend, the ETH has been pulled down all the way to $450 after it broke the neckline of the huge Head and Shoulder pattern. After that, we see a beautiful reversal on Sunday afternoon and on Monday it went sideways.
Looking at the chart on the right side, 30-mins graph, we see a beautiful upward ran followed by a rectangle pattern, which indicates the continuation of previous trend is on the way. Inside the sideways rect, we also see an upward tendency. The MACD shows momentum is picking up, the RSI is hovering around 70. Everything looks like a break of the neckline is possible in the near future.
But if we step back, looking at the larger picture, which is the chart on the left side, 4-h chart. We can see how big the H&S is, which indicate how important the neckline is. It took months to finish the H&S formation, and on this time framework, the breakdown seems like a just beginning of the dumping. I may claim polarity here. The neckline will turn from a long-term support to a long-term resist. And I don't think this neckline $570 can be easily bypassed.
So what's your opinion?
But one thing is sure. If we do see a break of the neckline, which means a larger force is pushing ETH back to the top ignore how the market is. A strong bullish run will happen. If we see a kickback by the neckline, a massive sell-off will pull ETH to even a lower bottom, let's say $300
So, which side are you going to pick?
Looking at the chart on the right side, 30-mins graph, we see a beautiful upward ran followed by a rectangle pattern, which indicates the continuation of previous trend is on the way. Inside the sideways rect, we also see an upward tendency. The MACD shows momentum is picking up, the RSI is hovering around 70. Everything looks like a break of the neckline is possible in the near future.
But if we step back, looking at the larger picture, which is the chart on the left side, 4-h chart. We can see how big the H&S is, which indicate how important the neckline is. It took months to finish the H&S formation, and on this time framework, the breakdown seems like a just beginning of the dumping. I may claim polarity here. The neckline will turn from a long-term support to a long-term resist. And I don't think this neckline $570 can be easily bypassed.
So what's your opinion?
But one thing is sure. If we do see a break of the neckline, which means a larger force is pushing ETH back to the top ignore how the market is. A strong bullish run will happen. If we see a kickback by the neckline, a massive sell-off will pull ETH to even a lower bottom, let's say $300
So, which side are you going to pick?
