Ethereum (ETHUSD) as mentioned in the last post collapsed to Support A instead of returning to a price target area between ~$858.46 and $885.75 to maintain its current bullish momentum.
A break of the channel at ~$739.81 on May 10 does suggest a bearish bias for Ethereum. Price action on the other successfully testing Support A (~$685.23 and $646.08) indicates a bullish scenario for Ethereum.
In order to avoid trying to pick the bottom and also waiting for the current move off of support A to indicate more bullish upside, it is best to wait for an area of consolidation in the current bullish move and then buy an upside breakout from the consolidation. It makes the picture of a bullish flag come to mind.
Green arrows on the chart show a likely price trajectory for Ethereum (ETHUSD) for a long position. The least price target for Ethereum (ETHUSD) based on this bullish scenario is the previous high made of ~$820.00 on May 5, 2018.
Failure of price to maintain its current move off of Support A could lead to price testing Support B and a break below that could send Ethereum (ETHUSD) back to the low $500’s