Old school technical analysis says that price itself is the most inportant technical indicator. Some claim that the most important part of technical analysis lies in the price itself, as it travels through time.
ETH, in terms of technical analysis, is also a potential bear flag. Bear flags extend/continue a downward trend. The bear flag pattern has a powerful downward move followed by an upward consolidation channel. Furthermore, even if we do not have a bear channel, ETHUSD seems to be in a channel, after creating the recent touch point at its upper band. This supports that previously profitable Longs may take partial or full profit, and new bears will open new short positions.
The Ethereum technical analysis video shows the 14 day RSI (relative strength indicator) along with its simple moving average and we look for an upcoming crossover that seems to be imminent despite not confirmed yet. The RSI presents historical market strength and weakness. And is used by many traders as a popular technical indicator on charts to identify price momentum changes
A trade idea is provided for your consideration, for shorting ETH with a healthy stop above $1800, and 2 profit taking targets with a reward vs risk of 1.5, and a second that is much higher. See the Ethereum technical analysis video below for more.
On a weekly timeframe, ETHUSD may also be showing a pattern of Head and Shoulders pattern. On a technical analysis chart, the Head and Shoulders formation happens when a market trend is about to change, either from a bullish to a bearish trend. If that Head and Shoulders pattern plays out, many times, traders look for the price to reach a low that completes a measured move from the top of the head, with the middle of the measured move being the neckline. That would take ETH to apx $600, as shown in the chart below.
However, if ETHUSD goes above $1816, the bear premise is over, the head and shoulders pattern has failed or was mistakenly formed in the first place.In any case, it would be time for realizing that the bulls have regained control. A trade idea must always include a stop.
If and when the technical analysis with Ethereum plays out, one could also decide to play a parallel trade idea with Bitcoin or most other cryptocurrencies, especially the ones perceived as being relatively weaker according to your own research. Trade ETHUSD or any other crypto at your own risk only.
ETHUSD on the hourly rate and the symmetrical triangle: Traders that seek a greater level of confirmation can wait for the break of the triangle (up or down) shown in the image below. The symmetrical triangle which highlights indecision in the market at this time frame, and a “tie” between the bulls and the bears.
Traders need to verify that the breakout that is expected to come next, is not a "fakie" (failed breakout). A good way to better understand what Ethereum may do next, is to wait for another hourly candle, following a breakout up or down. Alternatively, traders can wait for a retest of the triangle breakout line and then watch if the price shoots back in the same direction of the breakout, or goes back into the triangle, which may signal trapped traders and an upcoming faster move to the other side.
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