A downward move back to the low in March 2018. With a lot of supports on its way to the down side ETH chart is forming a pattern call the symmetrical triangle. After maintaining a strong support at 367usd back in March 2018 and moving up back to gain 127%, ETH has lost -62% and aiming back to its support level.
On the daily time frame, price dropped to 493usd but closed at 511usd. To determine if the bullish trend will set in or the bearish trend will continue the following will be used:
- Williams alligator
- chart pattern
THE WILLIAMS ALLIGATOR
This indicator is very easy to use and understand, the three EMAs which are green, blue and red( LIPS,JAW and TEETH respectively) plays a vital role. The green is considere to be the fastest EMA among the three and indicates when there is a bearish move or the move is about to change. When the green EMA crosses the two EMAs from up moving down( known as ALLIGATOR SLEEPING), this gives a signal to exit tht position until an upward crossing is achieved.
This is clearly shown below, as the green EMA crossed the other two EMAs moving down. More bearish signal comes in when the three EMAs are strenched apart from each other and moving lower, this is called ALLIGATOR IS EATING WITH WIDE MOUTH OPEN indicating that price will see more down side.
THE SYMMETRICAL TRIANGLE
As mentioned above, alot of support holding price up and probably would bounce back up. The first thing you need to know about triangles is that they are a form of support and resistance.
The trendlines of the symmetrical triangle is two which are DESCENDING TOP TRENDLINE AND ASCENDING BOTTOM TRENDLINE.
These two trendline, price must touch these line at least a number of 2 to 3 times as it gets completed. Currently is has completed the second touch of the top trendline and going to the third on at the bottom as volume as well has decreased.
Technicals suggest that price will likely touch the green zone as it moves down as the triangle is almost completed before a stong bullish move will be made between 475usd down to 300usd.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.