After having broken out from a clear descending channel (indicated with blue as the support line and red as the resistance line), ETH/USD first entered a secondary channel that lasted from 7/17 until 8/1. We have no broken out from THAT channel that ended up producing two perfect back tests of the broken red line (green arrows).
Now the intrigue starts. It looks to me that an inverted head and shoulders pattern developed from 7/26 through 7/30, with the right shoulder dip being the perfectly formed descending wedge discussed late that very day. We are now OUT of that inverted head and shoulders and should see 240 as a minimum target from this smaller pattern alone. BUT, it now appears that a larger inverted head and shoulders pattern has developed (the large yellow oval) and THAT pattern, if confirmed should push ETH/USD back to 300.
I have charted the S&P 500 every day with a YouTube video channel for the last seven years. The S&P has exhibited one inverted head and shoulders pattern after another and at least two that I can readily recall had a SMALLER inverted head and shoulders as the HEAD of the larger pattern.
If you do not know what head and shoulders patterns are please let me know and I will provide a link to what makes these things tick and how they are one of the most dependable of all chart patterns.
Just one caveat... it remains to be seen if the ETH/USD chart operates with the same kind of historic tendencies as a major stock index would. So far, in my short time of studying the ETH/USD chart, I would say it does, but with a little more wiggle room than I would expect from the S&P.
What would constitute a breakout from this larger pattern? I would think a solid move over 240 should do the trick.
Once again, this chart and analysis is brought to you by the good folks at 0x521b495fc2D065787F21c5a2d6560e8dD141a4f4
Now the intrigue starts. It looks to me that an inverted head and shoulders pattern developed from 7/26 through 7/30, with the right shoulder dip being the perfectly formed descending wedge discussed late that very day. We are now OUT of that inverted head and shoulders and should see 240 as a minimum target from this smaller pattern alone. BUT, it now appears that a larger inverted head and shoulders pattern has developed (the large yellow oval) and THAT pattern, if confirmed should push ETH/USD back to 300.
I have charted the S&P 500 every day with a YouTube video channel for the last seven years. The S&P has exhibited one inverted head and shoulders pattern after another and at least two that I can readily recall had a SMALLER inverted head and shoulders as the HEAD of the larger pattern.
If you do not know what head and shoulders patterns are please let me know and I will provide a link to what makes these things tick and how they are one of the most dependable of all chart patterns.
Just one caveat... it remains to be seen if the ETH/USD chart operates with the same kind of historic tendencies as a major stock index would. So far, in my short time of studying the ETH/USD chart, I would say it does, but with a little more wiggle room than I would expect from the S&P.
What would constitute a breakout from this larger pattern? I would think a solid move over 240 should do the trick.
Once again, this chart and analysis is brought to you by the good folks at 0x521b495fc2D065787F21c5a2d6560e8dD141a4f4