Big rejection off short-term triangular breakout attempt to force price back below cycle trend zone and into bearish territory.

Ultimately not the outcome most of us were hoping for but also not too unexpected. I believe indication of this could have been determined by the following:

1. Focusing on the first red candle we can notice that open occurred around pattern resistance which triggered the breakout attempt. However based on the prior candle we can also note that there was rejection right before this, a sign that resistance was still somewhat strong. Once price was rejected at 3450 it then dropped below CTZ and lower buffer until the candle closed at lower buffer.

2. Since the first candle closed at buffer, it is a good idea to wait for some PA on the next. Noticing that the second candle continued momentum would have been my indication to TP (~3350). This would be the safe route. The riskier route would be to sell once price fell back below triangular resistance (~3400). Yes this is just a slight difference but imo unless you have a lot of money or do margin, $ETH isn’t a profitable coin to trade in this market. If you’re looking to flip $ETH then I would suggest NFTs and trading pairs, but flipping USD for this coin is not something I tend to promote due to “risk vs reward”.

See scenario 2 from yesterday’s post for expected critical supports. W1 MACD still on the edge of divergence but Chaikin has returned back to zero. It’s difficult to say where we head from here but something’s telling me we’ll actually see major support and reversal around 3100; thought process provided if this does occur.