ETH - Double-bottom or lower low? What's next
So, in hindsight it is obvious that the 2.8k level acted as a strong resistance and can be seen as a bearish retest of the breakdown we had on the 4th of august. I must admit that I leaned towards a break above with ETH going for a lower high around 3k, but it is what is is.
Now ETH is back at the lows of abovementioned breakdown around ~2300$, so there is a slim chance of a double-bottom being formed, usually a very strong pattern, although I must say I'm not fully convinced about it playing out.
Reason being the long wick we had into low 2k's and the overall weakness of the market. So there is also a chance of a bearish scenario, which would be an aggressive drop below 2k coming days, might even go as low as 1800 but that's REALLY just guessing at this moment. Right now I would say it's 50/50.
IF this double-bottom is real, ETH should hold ~2300$ coming days. Usually the longer it takes for a move it goes the other way. So think if ETH can hold here for another 5-8 days chances increase greatly.
Unfortunately it all depends on the stock market and of course BTC right now. So if the stock market sees a correction later this day, ETH might lose current levels and probably drops below 2k coming days/next week.
Obvious key level to the upside would be 2.8k. If you want to be safe you should wait for a clean break above and long on retest. Bit more aggressive approach would be longing current levels with a tight stop. Ideally you should not use any stops at all IMO.
If you trade spot I believe these are decent levels to start buying as you should not worry about a 15-20% correction anyway. See it as a discount if it happens haha.
Stay safe!
Now ETH is back at the lows of abovementioned breakdown around ~2300$, so there is a slim chance of a double-bottom being formed, usually a very strong pattern, although I must say I'm not fully convinced about it playing out.
Reason being the long wick we had into low 2k's and the overall weakness of the market. So there is also a chance of a bearish scenario, which would be an aggressive drop below 2k coming days, might even go as low as 1800 but that's REALLY just guessing at this moment. Right now I would say it's 50/50.
IF this double-bottom is real, ETH should hold ~2300$ coming days. Usually the longer it takes for a move it goes the other way. So think if ETH can hold here for another 5-8 days chances increase greatly.
Unfortunately it all depends on the stock market and of course BTC right now. So if the stock market sees a correction later this day, ETH might lose current levels and probably drops below 2k coming days/next week.
Obvious key level to the upside would be 2.8k. If you want to be safe you should wait for a clean break above and long on retest. Bit more aggressive approach would be longing current levels with a tight stop. Ideally you should not use any stops at all IMO.
If you trade spot I believe these are decent levels to start buying as you should not worry about a 15-20% correction anyway. See it as a discount if it happens haha.
Stay safe!
Note
For reference look at the price action between 10-17 of may, when ETH was trading at the lows of the range and held the ~2.8k level for a week. This is what I mean with "usually if it's taking too long for a move it goes the other way" but surely this is a different scenario here.
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