Ethereum Technical Analysis for 01/13/2016 – Reversal Candlestick

The bull market in Ethereum is continuing to show signs of weakness. The 4-hour chart sports a very large Pin candle, which has the highest volume (1213.2 BTC) of any candlestick going back to October of last year. These types of candlesticks – where price spikes up sharply and then abruptly crashes – usually appear at the end of bull markets, and are recognized as reversal signals by many experienced traders. So, if you are long ETH, keep that in mind!

An examination of the 30-minute chart reveals a very discernible Head & Shoulders pattern. The left and right shoulders are fairly well aligned, so it’s a very clean formation.

There is also a huge pivot zone at 0.0026. Price punched below this area yesterday, but was not able to close and stay under 0.0026 in the past two days. This level has now acted as support about eight different times, therefore, a break under this area will be a major event from a technical standpoint.

Related Post

 

 

Disclaimer:  This is not trading/investment advice!

Chart Source: https://poloniex.com/exchange#btc_eth

If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

Share
Published by
Traderman

Recent Posts

Velocity Ticket Debuts As The AI-Powered Invoicing Tool Every Service Business Needs in 2026

Velocity Ticket is trying to fix a major gap in businesses, and the approach it…

5 days ago

Axelar Confirms $4.67M Exploit on Secret Network Bridge, Core Protocol Remains Unaffected

Axelar is moving fast to contain damage after identifying a security incident that has resulted…

6 days ago

Sui Synthetic Dollar suiUSDe Gets Its Own Website

suiUSDe now has a dedicated landing page. The token, officially the eSui Dollar, comes out…

6 days ago

Ventuals Winds Down HIP-3 DEX, vHYPE Withdrawals Now Live For All Holders

Ventuals has fully wound down its HIP-3 DEX, and vHYPE withdrawals are now open. The…

6 days ago

Avalanche Launches Payments Collective With Franklin Templeton And 25 Others

Avalanche has launched the Avalanche Payments Collective, bringing together 28 organizations spanning nearly every layer…

7 days ago

ASTER Whale Reopens 5x Long Days After Getting Fully Liquidated On The Same Token

A wallet tracked as 0x5f91 just opened a fresh 5x leveraged long on ASTER, putting…

7 days ago