Chart of the Day - Wednesday, May 26th, 2021

Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It's a 2-hour candlestick chart of Ethereum ($ETHUSD). Brian reminds us that trying to catch a falling knife often ends in pain. Ethereum peaked around $4,330 on May 11th before tumbling as much as 60% in less than two weeks' time. As of writing, Ethereum has viciously rebounded about 60% from the low just three days ago. For short-term traders, this sort of volatility is a dream. But to the new class of hodlrs out there, this is a lesson in the law of percentages. Brian points out that the VWAP (Volume Weighted Average Price) from the peak is lurking slightly above price right now. In other words,  there is potential overhead supply waiting to meet eager dip buyers. As we mentioned last week, Cryptocurrencies live and die by momentum. Once that momentum is gone, the script flips from "Buy the Dips" to "Sell the Rips."