Jack's Trading Classroom | ETHUSD Potential Bottom Formation
On May 26, 2021, we published a technical analysis "Possibility of Spot Buying in ETHUSD Daily Chart". At that time, we mentioned the spot buying opportunity in the Ethereum daily chart and have updated in the comments section that the buying condition has been met.
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On May 26, 2021, we published a technical analysis titled "Potential Spot Buying Opportunity in ETHUSD Daily Chart." At that time, we mentioned the spot buying opportunity for Ethereum in the daily chart and updated the buying conditions in the comments section.
Following the establishment of the buying conditions in the Ethereum daily chart, today we are looking at the four-hour candlestick chart of ETHUSD, where Ethereum is showing a potential head and shoulders bottom pattern.
Currently, the left shoulder, head, and right shoulder have all been completed, and we are only waiting for a breakout above the previous high of the neckline to confirm the establishment of the bottom pattern on the four-hour timeframe and meet the buying conditions of the pattern.
If the resistance of the neckline at 2912.15 is broken and closed higher, it can be considered as a bullish entry point.
Stop-loss points can be set at:
- The low of the head at 1728.15
- Or the low of the right shoulder at 2180.00
The Fibonacci sequence of 200 can be used to set the profit-taking target at 4096.15, satisfying the rise of the head and shoulders bottom pattern.
Since there are also buying conditions in the daily chart, when the target price is reached, partial profits can be realized, while the remaining position can be protected with a stop-loss order. Wishing you successful trading.
In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that traders strictly implement risk management and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is for personal reference only, please trade cautiously, as cryptocurrency trading may involve risks to your capital.
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