ETH closed this week with a Hanging Man/Harami type of candle and this is a concern. While the rally could continue for a few days, there is a good chance of a sharp reversal closer to the end of week. Let’s explore the hypothesis.
The July’s candle shifted the odds back to the bulls. A Piercing Line / Hanging Man type of candle is a very good outcome after the terribly bearish interim candle in the middle of July. These types of candles require confirmation.
If August closes above $2890, a continued rally would be confirmed. Anything below would be viewed as bearish. So far, the coin shows strength, but there are still 9 days left in August and anything could happen in this period.
After the Three White Soldiers in previous weeks, the last two weeks ETH moved mostly horizontally. The Hanging Man/Bearish Harami candle of this week could be viewed as an early alert that requires confirmation. The weekly odds are slightly on the dark side for this week. The indicators support the move higher.
Exercise caution in the second part of the week.
On Saturday, ETH made a Dark Cloud Cover that was canceled on Sunday.
The price is above the 8 EMA line. RSI has been reset in the recent pullback. Other indicators support the rally.
In the following subscribers section I discuss the Elliott Waves perspective, the channel, immediate targets and their timing.
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