I see a really good buy opportunity in the next days. ETH is moving up and down in a big triangle (pennant) - as the price is nearing the end of this triangle, we can expect a breakout soon.
I am pretty sure the breakout will be on the upside because Ether or better said the whole Ethereum platform has a lot of potential to grow in the future. Every touch at the bottom of the triangle will be a good buy opportunity. There is also a possibility that the price will directly break out of its inner, smaller triangle without touching the bottom trendline again.
Ethereum is backed by a very strong developer base and offers so much more than just it's currency Ether. As an example smart contracts or decentralized applications or just its flexibility to adopt new technologies in the future. I suggest to visit their website to learn more about them: ethereum.org
Pennant is a short-term pattern. This is not a pennant. This looks like triple top to me.
JanTrachslerCapital
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@DrJLT, Thanks for the information. I agree, it's not a pennant, I got this wrong. But I can't see a triple top here. The three peaks on the same height, which make a triple top, aren't given in this case. Why do you think it's a triple top?
UnknownUnicorn1502447
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Hello! I am a beginner in the trading field. I hope you do not mind me asking a field questions. I can see the trend of ETH going up and down in a big triangle, but whenever it goes down, how do you know that it will go up again and not hitting rock bottom? Do you determine this through news, the trend of the chart? Thank you!
JanTrachslerCapital
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@tpham1390, Hello tpham, well first, no one really "knows" what trend will follow. But as you see charts often behave in patterns. You can find these patterns in charts of other prices too, they repeat themselves. To determine the bottom line of the triangle you can connect the two lowest points at 2017-07-16 and at 2017-09-15. I don't know 100% that the price will bounce back from the bottom of the triangle again, it could also break out on the downside. But with my experience and because I know the Ethereum platform and its potential to grow, I think this is very ulikely to happen. I also think that the new money that now is in bitcoin - or a part of it - can fleat in ETH because some investors may realize how much better it is for so many usecases.
So i would say that I determine the pattern with what I see when I look at the chart. But I determine the possible behavior (a.e. the direction of breakout / long-term) with what I think about the news and facts I read and know.