אתריוםשורט
Ethereum Merge Coil: Breakdown
Trade Plan
The market is digesting the breakdown of support at 1529 and consolidating above the lower boundary of a triangle on the daily chart (see related idea below). Look to initialise a short position on signs of weakness during retest of resistance at 1529.
Key Takeaways
Price Action Analysis
On September 10, buyers made an unconvincing attempt to push price higher marked by point 1 on the chart. The majority of price action on the following day took place inside of the September 10 range. At the end of the day on September 11 we get confirmation on the weakness of the breakout in the form of two consecutive wide range, high volume bars marked by point 2 on the chart.
Price hovered around 1715 until September 13, when sellers entered the market in earnest. Price broke through support at 1715, falling more than 8% in under 4 hours on the highest volume since June 16. The decline marked the end of the rally from the August 29 low.
Prices traded listlessly through September 14. At point 4, we see four price bars oscillating in a tight range on increasing volume indicating that supply and demand are reaching a tipping point. At point 5, the sellers make it clear that they are in control and push prices down below support at 1529.
At point 5, prices breakdown below support at 1529 before finding support at the bottom boundary of the price coil on the daily chart.
Throughout the decline from point 1 to 5, volume has risen steadily with each break of support occurring on strong volume.
The market is digesting the breakdown of support at 1529 and consolidating above the lower boundary of a triangle on the daily chart (see related idea below). Look to initialise a short position on signs of weakness during retest of resistance at 1529.
Key Takeaways
- Price is currently below long term support at 1529
- The bottom boundary of a triangle that began in late July is providing support
- The recent decline from the September high showed multiple signs of weakness
Price Action Analysis
On September 10, buyers made an unconvincing attempt to push price higher marked by point 1 on the chart. The majority of price action on the following day took place inside of the September 10 range. At the end of the day on September 11 we get confirmation on the weakness of the breakout in the form of two consecutive wide range, high volume bars marked by point 2 on the chart.
Price hovered around 1715 until September 13, when sellers entered the market in earnest. Price broke through support at 1715, falling more than 8% in under 4 hours on the highest volume since June 16. The decline marked the end of the rally from the August 29 low.
Prices traded listlessly through September 14. At point 4, we see four price bars oscillating in a tight range on increasing volume indicating that supply and demand are reaching a tipping point. At point 5, the sellers make it clear that they are in control and push prices down below support at 1529.
At point 5, prices breakdown below support at 1529 before finding support at the bottom boundary of the price coil on the daily chart.
Throughout the decline from point 1 to 5, volume has risen steadily with each break of support occurring on strong volume.
כתב ויתור
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