ETH Where will the Bull go?/Bullish PerspectiveBYBIT:ETHUSD
Notice in chart---Red: rise; Green: fall
1D trend chart
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1. Pattern is forming
Since 2020 Dec., ETH takes around 10 months to build a beautiful Cup and Handle.
We just confirm the handle formed while the orange downtrend line was broken out recently.
From the period this pattern took, we presume that a surge will happen before 31 Dec '21
*Cup and handle is a strong bullish signal that extending an uptrend.
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2. What should we notice?
Considering the pattern may not form directly, should presume that price might retest the downtrend(orange line) again.
Also, all previous highs are resistance for price, so remember to be cautious when 4035.5 and 4383.5 coming, consolidation easily occur while approaching them.
Furthermore, nothing ever get 100% chance, so we shall setup stop loss.
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3. How can we use it?
For Aggressive traders, you could buy immediately while the handle downtrend(orange line) was broken, once this pattern completed, your risk is low as the price go high.
For Conservative traders, you could wait the downtrend(shallow blue line) or previous high(4383.5) are taken out, this Cup and Handle pattern will be completed at that time.
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4. Bullish Target?
With Fibonacci levels, there are some long-term targets we expect.
a) 5422.30~5842.40----Fib(1.272~1.382)
b) 8202.55----Fib(2)
Anyway, never forget to control your risk
Stop loss: 2642.2
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Let's see where ETH can bring us to!
Trading is a reflection of yourself, sometimes you need to take a step back to see more.
Learn more daily and Be ready for any opportunities daily.
Have a nice trading!
