Old school technical analysis says price itself is the most important technical indicator. Some claim that the most important part of technical analysis is the price itself, because it travels through time.

ETH, in terms of technical analysis, is also a potential bearish flag. Bearish flags extend/continue a downtrend. The bearish flag pattern has a strong downward move followed by an upward consolidation channel. Additionally, even though we don’t have a downtrend channel, ETHUSD appears to be in a channel, having created the recent touchpoint at its upper band. This supports that previously profitable longs can take partial or full profits, and new bears will open new short positions.

Ethereum Technical Analysis Video Shows 14-Day RSI (Relative Strength Indicator) with its simple moving average and we are looking for an upcoming crossover that seems imminent although not yet confirmed. The RSI shows the historical strength and weakness of the market. And is used by many traders as a popular technical indicator on charts to identify changes in price momentum

A trade idea is provided for your consideration, to short ETH with a healthy stop above $1800, and 2 take profit targets with a reward versus risk of 1.5, and a second much higher. See the Ethereum technical analysis video below to learn more.

On a weekly timeframe, ETHUSD may also show a head and shoulders pattern. On a technical analysis chart, the Head and Shoulders formation occurs when a market trend is about to change, either from an uptrend to a downtrend. If this head and shoulders pattern occurs, many times traders are looking for price to hit a low that completes a move measured from the top of the head, with the middle of the measured move being the neckline. This would take ETH to around $600, as shown in the chart below.

ETHUSD weekly chart with head and shoulders formation

However, if ETHUSD breaks above $1816, the bullish case is over, the head and shoulders pattern failed or was formed by mistake in the first place.. In any case, it would be time to realize that the bulls have regained control. A trade idea should always include a stop.

If and when the technical analysis with Ethereum unfolds, one could also decide to play a parallel trading idea with Bitcoin or most other cryptocurrencies, especially those perceived to be relatively weaker based on your own research. Trade ETHUSD or any other crypto at your own risk.

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Technical analysis

In financial trading, technical analysis refers to the method of studying the history and price movements of an instrument, such as currencies, stocks, commodities, etc. The main determinants include the historical price movement of an asset, chart patterns, volume and other mathematical visual based tools, in order to predict the future movements of this instrument. Traders who use various means of technical analysis are known by various terms, such as technical traders, technical analysts or technicians. At the heart of technical analysis is the notion that the past performance of a financial asset is potential evidence of future activity. Unlike fundamental analysis, technical analysis is not interested in the causes of price fluctuations; he deals only with its effects. Therefore, technical traders diligently observe the historical charts of the instrument they wish to trade. By applying a number of techniques, technical analysis ultimately predicts how prices will act, sometimes also time-dependent. There are a host of visual tools available to the technical trader, with the most popular of these being included in all major brokerage platforms today. Understanding Technical Analysis Technical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to charting tools that allow the trader to predict the movement of an asset before it actually happens. These advanced techniques include Fibonacci, pivot points, trendlines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools that allow a trader to take advantage of a strong trend, by entering it while it is forming; these tools include the MACD, the Awesome Oscillator and moving averages. Technical traders don’t all use the same tools of course, and even a trader who uses a particular indicator. For example, the stochastic oscillator will likely use it in a different way than another trader using the same indicator or set of indicators, which makes technical analysis extremely subjective. That said, technical trading has merit, and as unintuitive as it may seem, previous price patterns show up time and time again. As an increasing number of traders search for specific market points, the likelihood that these points will matter also increases.

In financial trading, technical analysis refers to the method of studying the history and price movements of an instrument, such as currencies, stocks, commodities, etc. The main determinants include the historical price movement of an asset, chart patterns, volume and other mathematical visual based tools, in order to predict the future movements of this instrument. Traders who use various means of technical analysis are known by various terms, such as technical traders, technical analysts or technicians. At the heart of technical analysis is the notion that the past performance of a financial asset is potential evidence of future activity. Unlike fundamental analysis, technical analysis is not interested in the causes of price fluctuations; he deals only with its effects. Therefore, technical traders diligently observe the historical charts of the instrument they wish to trade. By applying a number of techniques, technical analysis ultimately predicts how prices will act, sometimes also time-dependent. There are a host of visual tools available to the technical trader, with the most popular of these being included in all major brokerage platforms today. Understanding Technical Analysis Technical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to charting tools that allow the trader to predict the movement of an asset before it actually happens. These advanced techniques include Fibonacci, pivot points, trendlines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools that allow a trader to take advantage of a strong trend, by entering it while it is forming; these tools include the MACD, the Awesome Oscillator, and moving averages. Technical traders don’t all use the same tools of course, and even a trader who uses a particular indicator. For example, the stochastic oscillator will likely use it in a different way than another trader using the same indicator or set of indicators, which makes technical analysis extremely subjective. That said, technical trading has merit, and as unintuitive as it may seem, previous price patterns show up time and time again. As more traders search for specific market points, the likelihood that those points will matter also increases.
Read this term ideas and points of view.