As you can see in my chart ethereum trades in an steady uptrend which was realized by the uptrend line we have here and which is marked in grey in my chart as you can see it bounced several times at this line, therefore we can expect it to be a strong level which will be recognized when touched again. The overall range we have above this line is also supported by the 600-EMA which is marked in blue, it is an important in the structure because when we fall below it that will cause more pressure to the downside but at the moment we can expect ethereum to hold this range rightly above.
What is more important here and meaningful is the huge inverted head and shoulder formation in which we are trading currently, the two left shoulders and the head formed already which you see marked in my chart with the blue price levels, the neckline is marked in light blue and at the moment we have the next first right shoulder building here, it is possible that we will bounce at the neckline and form the second right shoulder. This overall scenario will build an inverted formation which has a high likelihood for a continuation to the upside when confirmed properly.
To confirm the huge inverted formation we need to cross above the light blue neckline and confirm above it, when this happened it will give ethereum an overall shape with its targets ahead, the formation can be traded aggressively or conservative, the conservative approach will be much wiser here to wait when the inverted head and shoulder formation confirmed and then place the trade with targets way above because there is still a smaller possibility given that we fall below the rising grey and firstly test the remaining support below that level.
In this manner thanks for watching everybody, support for more market insight and all the best!
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Information provided is only educational and should not be used to take action in the markets.
Here is my idea on the H&S
I believe we are still firmly entrenched in the right shoulder. I also believe that if price breaks to the downside we could see another "Shoulder" form before breakout. I would say if price breaks below the 50EMA on the daily this pattern would be invalidated.