Ethereum Technical Analysis for 3/27/16 – Head and Shoulders

Happy Easter everyone!

My name is Matthew and I’ve agreed to do some analysis on crytocurrencies for themerkle.com in the upcoming weeks/months. I’ve been trading Forex pairs for a while and have more recently added crytocurrencies to my repertoire.  I’ll post one analysis a day on the various cryptos so be sure to check back regularly! Also feel free to leave comments.

ETH/USD – after a huge up move in the pair we are seeing some corrective moves and a head and shoulder formation forming on the hourly and 4Hour charts. This pattern points to a deeper correction towards 5.67. This is also close to the 78.6 retracement from 3.32 to 15.2 highs seen recently, this retracement comes in at 5.86. At the time of this writing the price was begininng to violate the Head and Shoulders neckline (illustrated by the blue arrow). Even more bad news for the bulls we have existed the ascending wedge (under the right shoulder) and that targets a move to 9.24 – 9.4 . I would imagine that bulls would need to get the price and keep it above 12 to invalidate these patterns, however they may struggle without a fundamental catalyst.

 

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Chart from tradingview

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Matthew22

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