Where is ETH headed based on what we know in this chart?
Moving average:
50 DMA (orange)
Chart Pattern:
, which is a reversal pattern. Despite making lower highs, the lower lows is flattening, which signals sellers are getting exhausted. Keep in mind we can still make new lower lows so you have to trade this pattern conservatively at the extremes or wait for a breakout. Wait for interesting prices to either speculate on or accumulate depending on what type of trader/investor you are (short term profit taker or 2-3 year investor type). The positive with this pattern is that it signals a bottoming phase is taking place and we are finding that support sooner rather than much later. That is the idea anyway.
ETH made a very move on Dec 20th moving above the 20 that signaled a huge rally climaxing just above the 50% extension. Most of the bear market rallies between and in 2018 have climaxed at the 61.8% Fib. So in some ways this downside move was a bit expected as the market got overbought.
ETH is finding support again at the 50 DMA despite its continual protocol upgrade DELAY i.e. Constantinople that introduces a number of enhancements from scaling to security. There was a security bug in the software update, which needs to be patched. But because of the nature of the bug the entire QA process needs to be reran. Now obviously to understand where ETH is going we need to have some predictions on where is headed. I linked this idea to my latest prediction.
-The moving averages suggest we should see more consolidation before the market decides we go up or down due to the flattening nature of the 50 DMA. You can see I expect ETH to make this decision on price action around Jan 22nd which is in line with .
-Let’s closely monitor the price movement of the next 48-72 hours as I’m expecting a move to the upside or downside. It really is 50/50 right now.
Regards,
Bobby
Don’t hate the hair, hate the game.
Published at Sun, 20 Jan 2019 00:01:28 +0000
