ETH has been bumping along under the weight of a 3rd arc pair on a longer-term chart for the past few days. There is an energy point approaching. Which way will it likely break? Up or down?
The first thing I notice is that pricetime is still below the 3rd arc, so that would be a red flag urging caution. On the other hand, price has tested that arc some 6 times now, and has not been slapped down yet. This suggests that sooner or later the arc will yield. Is that time now?
I tend to think it is likely to rally soon. One of the clues I have is the ETHXBT chart:
Here we see two setups (we looked at this chart over the weekend). Interestingly, both setups have arcs which intersected at the present time. One of those arcs pairs is a 5th arc pair (black). Pricetime is very close to exiting both of those arcs in the next several hours (unless there is a sudden reversal to lower prices quite soon).
This chart, while not yet giving a buy signal, is very likely to give one soon, with a close above 2 arc pairs. This could mean one, or both, of two eventualities:
- ETH is about to rally, and/or
- XBT is about to fall
Readers of my weekend column will know that I am a bit bearish on XBT (short term). So possibility 2 seems reasonable to me. But the two charts together leads me to suggest ETH is likely to rally soon.
Litecoin seems poised to rally, assuming it can get past the top of the square which stopped the last advance (yellow highlight). If it does so, as I suspect, the next target will be ~ $15.63
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.