With all the excitement in the Bitcoin market recently, I have not paid a lot of attention to Ethereum. However, this asset deserves our attention. It is signalling that a new advance might be in the making. Let’s look at a bear setup on long-term 2-day chart:
This bear setup from the ATH shows 2 successful tests of support at the 1st arc pair. I don’t imagine I need to explain here why this bullish. However I want to point out that the blue arrow is highlighting a test of the 1×1 Gann angle. The 1st test of resistance was unsuccessful (from a bull point of view). However, price is once again testing the angle as these words are being typed. If/when we get a close above the angle, we will have a(nother) buy signal on the long-term chart.
I have highlighted with a bold red line the 1×1 Gann angle from the ATH, seen earlier. The blue arrows are indicating that throughout the setup pricetime has respected the setup. Price was stopped cold by the 3rd arc pair for many months!! However, at the very end of December 2016 price FINALLY closed on the sunny side of the pair. It took 6 months to get through it, but it happened some 10 days ago. I trust my readers can appreciate that this is significant. Actually, a close on the right side of the arc pair signaled a buy signal, issued last week.
As you can see, price is working it’s way through 3rd arc pair resistance. It looks like it will clear the pair within a day or two. The 0 line ( bold blue) on the pitchfork will be significant resistance.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.