Jack's Trading Classroom | ETHUSD Ethereum Bottom Pattern Update

In June 01, 2021, we published a technical analysis "Potential Bottom Pattern for ETHUSD", where we mentioned the potential head and shoulders bottom pattern for Ethereum. After the neckline of the head and shoulders bottom pattern broke upward, Ethereum closed at 2821.0 above the trendline, meeting the conditions for entering a long position based on the head and shoulders bottom pattern.

In June 01, 2021, we published a technical analysis titled "Potential Bottom Pattern for ETHUSD," where we mentioned Ethereum's potential inverse head and shoulders pattern. After breaking above the neckline trendline of the head and shoulders bottom, Ethereum closed at 2821.0 above the trendline, meeting the conditions for entering a long position based on the head and shoulders bottom.

Today, we observe the four-hour candlestick chart of ETHUSD once again. Based on the head and shoulders bottom pattern provided in the previous article, Ethereum can also be analyzed using a symmetrical triangle pattern. After breaking the neckline trendline with a candlestick, Ethereum briefly retraced below the trendline but has not broken the bottom support trendline. The structure of the higher lows and the trendline below remains intact, with the stop-loss set at the low point of the right shoulder at 2180.00. Therefore, the long position can still be held for the time being.

As the price of the right shoulder retraced to the Fibonacci level of 38.2 at 2180.45, if the previous high of 2912.15 is broken, a bullish target will appear in the Fibonacci range of 127.2-138.2 at 3234.20-3346.45. The bullish target of the head and shoulders bottom at the Fibonacci level of 200 is still valid at 4096.15.

Recently, the digital currency market has experienced significant fluctuations. It is recommended for traders to strictly implement risk management 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 pose risks to your capital.

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