Back to testing the formal resistance which it broke out from last year december priced at $384.
QUICK RECAP OF LAST YEAR MOVE:
Last year November/December ETHUSD show a big pennant flag pattern on the daily time frame, some indicators were used to check the autheticity of the move and the targets.
( THE OLD CHARTS OF LAST YEAR)
The first was the pennant flag pattern which started forming on the 11th of June 2017, with price moving up to $412 and gradually moved down to $137. These two price formed the first to resistance and support levels. Another spike in price moved price up to $389 on the 31st of August 2017 and pulled down back to $198 forming the second resistance and support on the pennant triangle. Price continue to consolidate inside the flag as it swings and continue to make more higher-highs and higher lows moving towards the strong resistance.
Finally the breakout happened on the 22nd of November 2017, after the breakout price pulled back to retest the initial resistance turning it to a support and retested it twice ( on the 29th of Nov and 7th of December 2017 respectively)with a measured target of $747
Secondly, using an indicator called the MOONPHASE, price was expected to touch the resistance and bounce off at the support and breakout aiming at the same target as the moon phase clearly shows a swing to the measured target( as shown below)
And lastly with the use of an indicator called WILLIAM ALLIGATOR:
Was waiting patiently for the green EMA (called the LIPS) to cross the other two EMAs( called TEETH and JAW) wich will give a signal for a bullish move.NOT SHOWN
With the final target of $1124, which ETHUSD reached and even touched an All Time High of $1,432.
Price has gradually moved down to touch that same resistance that turned to support at $389 staying in a descending channel.
Oscilators are fully oversold on the daily time frame. If this channel is being maintained as the RSI and STOCHASTIC RSI is oversold,price will always retrace back to 0.5fib which is $769. This being the third time the RSI will touch 22. Trend ned to get back to 50 for more bullish strong signal.
TECHNICALS suggests that price might likely continue lower in that desecending channel as it hits $389 before it breaksout and make a new move.
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.