"Jack's Trading Classroom" - Trend analysis of ETHUSD pattern

Ethereum originally presented a head and shoulders pattern in the chart, as we mentioned on March 7, 2021. Ethereum continued to rise to a high of 1949.0, but the price has not yet reached our target price.

Ethereum previously showed a head and shoulders pattern in the chart, as we mentioned on March 7, 2021. Ethereum continued to rise to a high of 1949.0, which did not reach our target price.

Currently, we also see the four-hour candlestick chart of ETHUSD. With the bullish target Fibonacci sequence 200 at 2033.25 still valid, the other two bullish targets have been achieved, which are Fibonacci sequence 127.2-138.21763.23-1804.03 and Fibonacci 161.81891.57.

We can still avoid the risk of profit reversal by protecting stop-loss. After the establishment of the head and shoulders bottom pattern with the breakout of the neckline, we can see a potential top pattern emerging now - the head and shoulders top.

As shown in the chart above, the head and left shoulder have already been completed, while the right shoulder is in an unconfirmed state. The neckline low point overlaps with the support of EMA144 and 169 moving average channels below. If the right shoulder is completed and breaks below the neckline low point of 1707.95, Ethereum is highly likely to weaken.

Attention!

We are still in an upward phase, and there is no need to enter a short position prematurely before the top is completed. Objective judgment can be made to temporarily continue holding long positions. As mentioned above, the risk of a downturn can be avoided by protecting stop-loss for long positions. The stop-loss level can be set below the previous low point of 1707.95, which coincides with the neckline support of the head and shoulders top pattern.

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that operators strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is for personal commentary, please read with caution, as cryptocurrency trading may pose risks to your capital.

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