The price action in ETH/USD actually formed a rising channel in its move from roughly $3,000 at the beginning of October to its current market around $4,800.
With no major crypto catalysts ahead to potentially change sentiment, and with resilience from macro economic headlines ( like the feared China Evergrande default story that sparked a brief burst of risk-off behavior), odds are pretty good that the trend higher will continue and that $5,000.00 is likely to be broken. With a daily average true range of around $250, we could see this within the next few trading sessions if bullish sentiment holds.
One other thing to consider as well is that we saw a massive run in ETH/USD between August and September when it went from roughly $2000 to a peak around $4000.
While this current move isn’t as strong (up 79% from October lows), we should consider the possibility that we may be at the tail end of this current swing move. If we do see $5000 break, that could mark a short-term top without any fresh bullish catalysts to hit the crypto markets.
Shiba Inu is back on our radar after an insane rally in October. The last time we we’re looking at SHIB/USD, the pair was consolidating into a symmetrical triangle pattern around the $0.000026 handle, and the signal for its next move was a break of that pattern.
Not too long after that post, SHIB/USD did breakout higher, likely with the help of broad crypto euphoria after the U.S. approved its first Bitcoin Futures ETF. That break in SHIB/USD turned into a 230% rally higher before topping out just under the $0.00009 handle.
Since then, SHIB/USD has given back over 50% of that move, actually testing the 61% Fibonacci retracement area drawn on the chart above. And we can see that a double bottom pattern has formed, signaling that bullish are taking back control on SHIB and likely ready to take it higher.
If you’re bullish on SHIB/USD, hoping that more exchange listings are coming ahead to attract more investors in the meme coin, then watch the falling ‘highs’ pattern for an upside break as that may be the catalyst to draw in technical buyers, as well as momentum players.
What do you all think? Are Ether and Shiba Inu on your radar for potential swing setups? Let me know in the comments below, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.
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