🏁ETHUSD The big picture

26. Sept. 2021

First of all why ETH and not BTC? That is because the attention has been shifting to ETH because of multiple factors.

Lets take a look at the 3D chart and map out our position:

First of all note the support and resistance areas in the chart.

Main resistance area - $4000
Main support area. - $1700

The biggest vertical distance in what seems to look like a symmetrical triangle is at about 62% . Take that info and store it safely because when we break that projection will come into play.

Leaving this formation

We usually leave symmetrical triangles at 75%-80% of their completion and if we were to apply that to this situation we would get approx 164 days until the clear break, but this would not take into account any fundamental analysis and it would not be that pertinent.

ETH needs to permanently solve the gas fee issue and move on to implementing the more important EIP’s . I strongly believe that when the fees will be permanently reduced we will gain the tailwind we need in order to leave this formation.


Looking at the Daily chart:


Weak bounce on the resistance area at $2750 , also a confluence point with Fib 0.382 , weak because the volume was low, but the weakness was on both sides, we can feel the market FUD highly influenced by recent fundamental news which we can split in 2 big categories :

Negative : China Evergrande - real-estate giants facing disaster
Positive : Twitter and BTC shaking hands for the benefit of the community

Now we have ourselves a fundamental war that will be won by the next news that adds to the balance, be it negative or positive.

Continuing on the daily, we would need to close above the 0.5 fib and open another green candle before considering longing mid term.


Final thoughts:

Moments like this in the market are known to break futures accounts that have poor risk management so our advice is to either build spot entries (you really can’t go wrong with this) or trade short term positions.