ETH/USD headed to a key support. A new beginning? (Big Picture)
Hello everyone,
Looking at the 1-day chart for ETH/USD, it appears that we are headed to a key area of support, and potentially the start of a new market cycle. First, the long-term ascending trendline, and second, the well-tested ~$388 level that previously acted as resistance (6/17, 9/17), and more recently as support (12/17). The convergence of the price upon these two key supports leads me to believe there is a high probability that we see a positive reaction once this level is hit. Ideally, this would mark the end of the recent downtrend, and make way for a new market cycle.
Don't forget that when there is utter fear and capitulation in the market, that can be a signal for the beginning of an overall change of trend. When everyone is greedy and calling for astronomical gains, watch out. Likewise, when everyone is in utter fear and calling for catastrophe and market collapse, watch out. Strong general sentiment like this can be an indicator of a shift in the overall market cycle.
Looking at the 1-day chart for ETH/USD, it appears that we are headed to a key area of support, and potentially the start of a new market cycle. First, the long-term ascending trendline, and second, the well-tested ~$388 level that previously acted as resistance (6/17, 9/17), and more recently as support (12/17). The convergence of the price upon these two key supports leads me to believe there is a high probability that we see a positive reaction once this level is hit. Ideally, this would mark the end of the recent downtrend, and make way for a new market cycle.
Don't forget that when there is utter fear and capitulation in the market, that can be a signal for the beginning of an overall change of trend. When everyone is greedy and calling for astronomical gains, watch out. Likewise, when everyone is in utter fear and calling for catastrophe and market collapse, watch out. Strong general sentiment like this can be an indicator of a shift in the overall market cycle.