Ethereum is forming a really strong major reversal signal with a head and shoulders formation. A break of major neckline support at 1096 (38.2% Fibonacci retracement, horizontal overlap support, neckline support) could trigger a strong move down towards 917 support (61.8% Fibonacci retracement, horizontal swing low support). If price breaks this major level of support, then our major resistance level would be at 1177 (Fibonacci retracement, horizontal overlap resistance).
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Most importantly why did it fail? Because poster zoomed in so closely. These patterns only hold real value when looked at in weeks and months not hours and a few days.
krwhitley
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There is a ton of support volume at ~1250 (seen any time the price bounces off that), and in general, a constant buy pressure despite the price dips. ETH is being bought up, so my bet is a continued rise, despite the ATH levels.
krwhitley
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@krwhitley, To further expand on this, I'm tracking real-time buy/sell volumes to have more insight into the underlying traffic below the generic "volume" (both sides combined) we see in traditional charts. Of the big 3 (BTC/ETH/LTC), ETH is a breakaway with a unique accrual pattern all to its own. It's literally a constant climb in buying $ being pumped in, with price dips mostly completely unsupported by volume. BTC (and LTC to a lesser degree) on the other hand shows accrual dips when in a big downtrend. LTC is in a holding pattern, but some of the money may be exiting BTC soon unless I'm mistaken.
Tdunlap1310
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Pretty weak call. People love to spout "H&S, H&S!" I'm not buying into it.
sethmdmic
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@Tdunlap1310, I agree - it looks like they were stretching to make it a H&S to begin with, and based on the drawing it had already bounced off support and denied the H&S trend anyway, so I don't really understand this analysis.
BasicTraderTolga
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And your right shoulder seems to be the left shoulder now...
urketadic
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Major resistance got rekt though, what do you think about the chart right now?
VieRusBris
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@urketadic, take a look at the 4h chart, I think the second shoulder is now formed