Hi friends! Welcome to this update analysis on Ethereum! Let's jump right in. Looking at the four hour chart, you can see that there are a few new developments, since my last chart. If you recall from the ETH analysis "Delirium in Ethereum!" we were assessing the development of the inverse head and shoulders pattern, that we hypothesized in the "MagicPoopCannon's Visionary Workshop" post. The original hypothesis of a developing inverse head and shoulders pattern involved a flat neckline at the 38.2% retrace. However, as the chart developed, a few things have changed, and we can see now that the would-be neckline appears to be sloping downward (in black.) Additionally, you can see that ETH has developed an apparent downtrend channel (blue dashes.) Looking at the chart, you can also see that ETH is now taking a pause just under the 50 EMA (in orange.) The 50 EMA has been quite problematic for the bulls, and ETH appears to be failing at it, yet again. Also, the MACD is poised to cross over bearish (orange circle,) increasing the likelihood of downside in the near future. With that said, I think the entire crypto market is trying to bottom around here. Perhaps we will make one more push lower, to flush out the weak hands, and then ultimately reverse back to the upside, completing this inverse head and shoulders pattern. That is pure speculation, however, so we need to see further evidence materialize on the chart, to confirm this hypothesis. If you'd like to know why I think the market could be bottoming here, it's because there are huge bullish divergences on many of the coins that I cover, some reversal patterns are beginning to emerge, and the buy-side volume is really starting to pick up. In terms of divergences, you can see that ETH has formed two equal lows on the MACD, while price has formed lower lows. So for ETH, this isn't an extremely strong divergence, but it is a divergence, none-the-less. What this is telling us, is that the sell-side momentum has been falling, on a broad scale, over the entire course of this bear market correction. The bears are losing momentum, and at some point, the bulls could rescue this market in a powerful way. Until then, we need to keep in mind that this is still a bear market, and the bears are in control. On the downside, look for a test of the 61.8% retrace as initial support. Remember, the 50 EMA, the downtrend channel, the neckline of the inverse head and shoulders pattern, and the 50% retrace are all resistance, and they're just above the current price actoin. Therefore, the path of least resistance remains to the downside.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Not even worth a chart. There’s a bot or manipulation on ETH USDT that follows exactly at 10% on BTC. Exactly. Check it out on Binance MPC. Been going on for days
TheGush
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I have sold off my ETH in hopes we hit your prophecy here. It makes me nervous though, every time I sell and wait to see it drop lower and it keeps coming back for more like a zombie. I buy back in at what I sold at to break even. Which way we gonna go? Damn market- find your bottom and let’s get on with it. This is giving me grey hair lately! Lol
TheGush
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These whales or bots or whatever they are, they’re super irritating. The price keeps jumping and dropping way too quickly and the chart patterns are way too uniform and linear to be natural trading. Far too many wicks for my liking in such a short time, and they’re almost the same pattern on each jump.
Definitely manipulation going on here. Looks like a whale got ahold of a trading bot. I’m not the only one who is noticing thi, I’ve seen other comments.
Anyone else seeing this? Is this what it’s gonna come to, we no longer have to decipher technical/traditional chart patterns, we have to adapt to a massive trend of bot trading now.
These things are gonna ruin any hopes of TA unless we can catch these patterns.
MPC- you up for the challenge? Or am I just being ridiculous/paranoid and that’s not what I’m seeing? Set me straight with your opinion, please.
What are these bots looking for, where do they decide pump or dump should start?
Can a bot like Profit trailer compete with whale bots?
houseofari
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@MagicPoopCannon you mentioned alts going into reversal. Which ones would you suggest for maximum returns? ICX? ADA? XRP (aka the Devil)?
copa1079
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Excellent pooping mr. magic!! Top notch analysis
?
BethanyJoy
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Please explain how the bottom blue dashed line was established as a trend line.
hardeight
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Man, your good! Keep’em coming
heartless
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what about now? plz update us
VSustar
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@heartless,
"Remember, the 50 EMA , the downtrend channel , the neckline of the inverse head and shoulders pattern, and the 50% retrace are all resistance, and they're just above the current price actoin."
I guess once all these are broken, then according to his writing bulls will take over