ETHUSD distribution, falling wedge, and short-term correction?
Updated
ETH has delivered some growth last week as attention turned towards it. It briefly touched $500 on some exchanges.
At this point, ETH has been consolidating. For many, it is a period of preparation for upward breakout. This is indeed a probable scenario.
Distribution: However, time is not ETH's friend here: it is highly unlikely to stay at a high level without moving either up or down. As Bitcoin and major blue-chip altcoins ALL pick up considerable gains since ETH stopped growing, lots of capital as left to seek higher returns. This positive feedback loop can drain ETH of its further potential.
Falling wedge: As the chart shows, the effects from this feedback is obvious. We also see divergence critically in volume.
Having said all this, my observation tells me that ETH is backed by big money interests. It is not going to collapse. I therefore foresee a correction to $430 - $400 levels before jumping again to break $500.
At this point, ETH has been consolidating. For many, it is a period of preparation for upward breakout. This is indeed a probable scenario.
Distribution: However, time is not ETH's friend here: it is highly unlikely to stay at a high level without moving either up or down. As Bitcoin and major blue-chip altcoins ALL pick up considerable gains since ETH stopped growing, lots of capital as left to seek higher returns. This positive feedback loop can drain ETH of its further potential.
Falling wedge: As the chart shows, the effects from this feedback is obvious. We also see divergence critically in volume.
Having said all this, my observation tells me that ETH is backed by big money interests. It is not going to collapse. I therefore foresee a correction to $430 - $400 levels before jumping again to break $500.
Note
Btw, I think the correction will commence with a H&S, so there's still a better place to exit to come.
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