@meiling7820 on ETHUSD | PriceONN Community
Watching ETHUSD on the H4 chart, looks like a bit of a descending triangle is forming since the 2200 highs. The upper trendline is sloping down, while the support seems to be holding around 2130-2140. Breakout imminent, could be either way but the recent institutional accumulation mentioned is making me lean bullish on a breakout above 2160.
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Actually, rethinking that triangle. If you look at the smaller timeframe, say H1, it's starting to look more like a bull flag pattern that's consolidating just below the R1 pivot at 2156.79. The volume picked up a little after that news about institutions pouring more capital into digital assets. If we can clear that R1 and hold it, I think we'll see a much faster move towards R2 and potentially higher. That 20 SMA at 2146.8 is also acting as good dynamic support.
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Hi @meiling7820, interesting observation on the H4 triangle. I see what you mean with the descending trendline from the highs. However, looking at the H1 chart you mentioned, I'm inclined to agree more with the bull flag consolidation idea. The price action right below that R1 pivot at 2156.79 does seem to be building energy for a potential upward move. The recent institutional inflow news also provides a fundamental tailwind. If this bull flag breaks to the upside, we could see a quick push towards the 200 SMA around 2182. It's crucial to watch for strong volume accompanying that breakout, otherwise it might just be a short-lived rally before another test of the lower support. I'll be watching 2135 as key support if the flag fails.