ETHUSD Technical Analysis UPDATE @ $708 - Feb 5th 2018
Update to: https://steemit.com/ethereum/@jagr/ethusd-technical-analysis-update-usd686-feb-5th-2018
There are a lot of things going on at the current level. I hope you guys have been watching closely.
First, let's take a look at ETH's daily against USD:
You will see that we have this section of consolidation that's occurred in the past. I expect this area to serve as a fairly strong support/resistance level. (See red circles).
Next, let's take a closer look at ETH's 4HR against the USD:
I've been talking about this quite a bit. See the red arrows, do you see a slight bullish divergence between ETH's price action (lower lows) and RSI's movement (same height, or slightly higher low)?
Also, look at where we're at. We're at the 61.8% fib retracement level AND the lower channel support line (draw crudely by yours truly). Yes yes, I have been saying this for a few posts already so what's different now? well, look...see those recent candlesticks? A large-bodied red candle followed by a large-bodied green candle (more than half the size of the red). This is almost a perfect railway track candlestick formation (it's a partial one here). This formation would typically signal a reversal in the current trend (note, it only works for trending markets, which we are currently in).
Remember, this is not financial advice. But you better believe that I have already bought up some ETH today. (P.S. I do like to take risks - cause I hold for long, so that is why I've traded off of the 4HR chart. You may want to see more positive bullish signs appear on the Daily before you start using your own money.)
Please note! I did not use all my fiat today, I took only a small portion of ETH. I still have fiat left waiting for possible further drops in ETH. This is what you call dollar cost averaging your way into an investment. Use this practice, or be sorry when your investment drops after you drop the whole bucket load of fiat on it all at once!
P.p.s I should start putting a worst case scenario with these things..It's always possible that price action could be pushed through our levels of support, triggering further open stop losses. If that occurs then we see further drawdowns, simply put. TA is not a perfect science! (it's an art)