Following up on my prior two posts identifying the symmetrical triangle forming inside an ascending triangle for ethereum:
Interesting setup for Ethereum:
https://steemit.com/ethereum/@third-eye/interesting-setup-for-ethereum
Ethereum setting up for a huge move here:
https://steemit.com/ethereum/@third-eye/ethereum-setting-up-for-a-huge-move-here
These are two of the most reliable technical patterns in classical trading. Only the head and shoulders pattern that occurs at the point of trend reversal is more reliable.
You can see from the magnifying glass in my image below that ETH appears to be breaking out here. We need it to confirm by holding above $316/ETH on a daily close***.
If ETH breaks below $285 on a daily close***, that would invalidate the pattern and you should close your trade for a small loss.
My lens is admittedly technical only here. However, the announcement to cancel the bitcoin SegWit2x fork is the potential catalyst. That represents a potential step backwards for bitcoin scaling and an inability to form consensus amongst the community.
Money that flowed from alts to bitcoin in anticipation of the fork "dividend" could now flow back to alts and ETH could be the main beneficiary.
It is also noteworthy that prior to the announcement to cancel the fork, bitcoin dominance had risen to ~60% which is historically where it has seen resistance and reversal.
The ETH technical pattern has two targets:
(1) The first is the small symetrical triangle that targets $495/ETH.
(2) A break above $400/ETH on a daily close confirms a breakout from the ascending triangle and targets $660/ETH.
For risk management purposes I plan to close half my trade just below $400/ETH, the other half just below $600/ETH.
As I mentioned above, I will close my entire trade position for a small loss if we break below $285/ETH on a daily close*** which would invalidate both patterns.
***Since these assets trade 24 hours, when I say daily close, I mean holding at that price level for 24 hours.
Disclaimer: nothing here is trading advice. Trade at your own risk.
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