Since August 14th Eth has been moving down slowly in what I believe is a beautiful flag (or corrective channel pattern as I like to call it).
These corrective channels show up across every asset on Higher and lower time frames.
In fact, almost every multi year bear market correction resembles these channel like structures.
From Bitcoin during the 2017 Bear Market, to AMZN during the Dot com crash, this pattern has distinct characteristics such as:
1. A quick move down with no consolidation or definitive peak formed. (Notice how on August 14th Eth Dropped after only a day and a half of consolidation). This isnt always the case in every pattern. 2. Choppy behavior 3.Usually includes one or multiple rallies between moves down (People call these bear market Rallies) 4.Usually consists of 2-4 lows formed in the channel before reversing and breaking to the upside.
Now back to this current Eth corrective channel on the lower time frames that we're looking at.
I believe we're at the tail end of one of these corrections I described above and 1 of 2 things happen in the near future;
1.The 2 fresh lows the channel has put in are adequate, the pattern is complete, and Eth gets sent back above $2,000. 2.Eth decides "Hey lets give these mfers some more pain" and puts in a third low in the channel around $1200-$1300, before completing the pattern and sending us back above 2k.
The only reason I have so much conviction in this outcome of $2000+ eth again soon, is because I've seen these corrective channel patterns play out hundreds of times in Crypto, stocks, forex, medals, and even NFT charts...Over several years.
But What would invalidate this pattern you ask?
A Straight spike down from here to around $1000 would destroy the channel and invalidate the trade for me. But I would be shocked if that happened.
While we can see how you have a bullish bias from price breaking out of the descending channel you have drawn, price is moving below the ichimoku indicator which gives us a bearish bias. Feel free to check out our analysis here
Brenvest
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@desmondlzw hey thanks for commenting. I just shot you a follow
Like I said, I could see one more move back under $1300. So i could definitely see that playing out.
Let’s see what happens.
ExecutorEA
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Perfectly fine
LUC_Capital
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I see how you got there but I don't agree. Painful looking H&S pattern on the daily with the right shoulder at $1650, then a leg down to $1000 to complete it. Intraday on markets looks bad too. We will see.