The Bulls Have My Attention, in Ethereum! (ETH

Hi friends! Welcome to this update analysis on Ethereum! Let's get right to it! Looking at the four hour chart, you can see that ETH has produced a strong rally above the downtrend channel (in blue.) Since then, price has consolidated in a bull flag above the top of the channel, and above the 20 EMA (in blue.) So, we can see that there are several changes that have emerged, that paint a bullish picture. We have a breakout above the downtrend channel , a bull flag , we're trading above the 20 and 50 EMAs, and price appears to have formed a rounded bottom type formation, around 360.

However, I'm still very cautious of this action. It does look nice, but I need to see some more evidence of sustainability. Now, there are some short term trade setups here. For educational purposes, you could go long on a breakout from the bull flag , with targets of 565.54, and then the 1200 EMA (in purple) which represents the 200 EMA on the daily chart . Or, you could wait to see if a breakdown back below the channel emerges, in which case it would be a fantastic shorting opportunity. Personally, I am neutral on this market, until I see more signs of sustainability. As another alternative, if this flag fails, and ETH falls to retest the top of the downtrend channel , it would be a very bullish sign to see a hold on the top of the channel. So, that would be a technical buy signal as well. Those are the trade setups that are worth waiting for.

On the MACD , you can see that it has formed a bearish crossover, as the volume dies off a bit, but those things are normal to see during a bull flag consolidation. With that said, if the flag breaks out, that would be a very positive sign, and 565.54 would be in the cards. Right about now, the haters would be saying "see, he's calling both directions in the market!" I'm not calling either direction. I'm showing you a formation, and I'm telling you where we're likely to go, once this formation breaks. That's what analysis and trading are all about. They're about identifying patterns, and determining entry and exit points based on them. That's exactly what I've done.

I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.

This information is not a recommendation to buy or sell. It is to be used for educational purposes only.

-Magic loves you-
NR