Jack's Trading Classroom | ETHBTC Cup and Handle Pattern

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Jack

Currently, we are looking at the 4-hour candlestick chart of ETHBTC, showing a cup and handle pattern in the mid-term for the Ethereum against Bitcoin trading pair. As we all know, the cup and handle pattern is a typical bullish formation.

Table of Contents

Earlier, ETHBTC has broken through the high point of 0.07400. This high point overlaps with the neckline formed in mid-May 2021, which is considered as an effective support and resistance level.

After breaking the high point of the cup and handle pattern, the profit-taking target is set at a 1:1 distance from the low point of the cup to the high point of the cup rim.

Therefore, we can expect to see a rise to the Fibonacci sequence 200 level of 0.08295 in the near term.

For those who enter the market after the breakthrough, the stop-loss should be set at the low point of the handle, at 0.07117.