Jack's Trading Classroom | ETHUSD Inverted Cup and Handle Pattern Waiting for Breakdown

Currently, we see the daily chart of ETHUSD, where Ethereum is showing a inverted cup and handle pattern, with both the cup and handle fully formed.

At the current stage, the focus should be on the low point at 1697.10. If this low point is effectively broken, it is considered as a sell condition for the inverted cup and handle pattern.

After breaking the previous low, we can look at the following levels:

• Fibonacci sequence 127.2-138.2 support range at 1241.35-1372.60
• And Fibonacci sequence 161.8 support level at 959.85

Combining with indicator analysis, the EMA15 crossing below EMA50 on the chart forms a bearish setup, the price closing below the EMA200 moving average, and at the same time, on the short-term hourly chart, a bearish condition of the Vegas Tunnel as shown in the image below.

The short-term trend continues to be downward, and overall, based on the daily chart pattern or the one-hour candlestick chart, it is more reasonable to take short positions.

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

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