Jack's Trading Classroom | Analysis of ETHUSD Trends and Patterns

In this month, we have updated two Ethereum-related technical analysis articles, namely "ETHUSD Inverted Cup and Handle Pattern Waiting for Breakdown" published on July 20, 2021, and "ETHUSD Short Selling Layout" published on July 21, 2021. After the articles were published, the conditions for entering short positions were not met, which are respectively closing below the low point of the cup handle on the daily chart and closing below the EMA12 filter line on the one-hour candlestick chart.

In this month, we have published two Ethereum-related technical analysis articles. The first one, titled "ETHUSD Inverted Cup and Handle Pattern Waiting for Breakdown," was released on July 20, 2021. The second one, titled "ETHUSD Short Selling Layout," was published on July 21, 2021. After the publication of these articles, the conditions for entering short positions were not met, namely closing below the low of the cup handle on the daily chart and closing below the EMA12 filtering line on the one-hour candlestick chart.

After the failure of the above patterns, today on the 29th, we observed on the daily chart of ETHUSD that Ethereum has broken above the upper resistance trendline. Following the trendline breakthrough, it has now reached the previous high of 2412.60 and has formed a double bottom pattern with two completed bottoms. The previous high of the trendline can be seen as the neckline resistance of this double bottom pattern.

If the neckline high point at 2412.60 is effectively broken and closed higher, it can be considered as the entry point for the double bottom pattern. A long position can be entered with a stop-loss set at the right foot low of 1715.75. The primary focus above can be on the Fibonacci 161.8 resistance level at 2854.80. This Fibonacci resistance coincides with the starting point of the uptrend trendline above, and it is recommended to partially close positions in this range and hold the remaining until the price target satisfying the Fibonacci 200 level at 3128.10 is reached.

Recently, the digital currency market has experienced significant volatility. It is recommended that operators strictly adhere to 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, and readers are advised to consider it carefully. Cryptocurrency trading may involve risks to your capital.

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