We have been warning about the unsustainable rally in the cryptocurrency market for a while now. Indeed, for several weeks, we have been pointing out bearish developments on the chart of Ethereum and Bitcoin. However, only a week ago, we proposed the idea that the bear market rally reached its peak, and, as if it was not enough, we also said a 50% decline was looming over Ethereum.
Today, we continue to stick to this assessment for Ethereum, which is mainly influenced by bearish fundamental factors like high-interest rates, quantitative tightening, and the prospect of a severe global recession. Due to the persistence of these factors, we have no reason to change our bearish medium-term and long-term views on the market.
For the short-term, we are growing increasingly bearish on ETHUSD. In the past 24 hours, Ethereum fell 8%, breaking below the immediate support and reaching bearish territory. This development is particularly bearish as it coincides with the RSI breaking below 70 points and other technical indicators turning bearish. Accordingly, we stick to our price target of 1 000 USD.
Illustration 1.01
In our previous idea, we said that ideally, we would like to see a drop in price accompanied by a build-up in volume to confirm our thesis; soon after that, a drop in price and a spike in volume occurred. Now, we would like to see more price decline and a further increase in volume. Ethereum is down approximately 15% from its recent peak.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bearish. DM+ and DM- are due to perform bearish crossover, which will further bolster the bearish case for ETHUSD. Overall, the daily time frame is bearish.
Illustration 1.02
The setup we introduced recently remains valid. Indeed, the bearish signal was triggered when the price broke below the immediate support.
Technical analysis - weekly time frame
RSI is bearish. MACD points to the upside but stays in the bearish zone. Stochastic is bullish. DM+ and DM- are bearish. Overall, the weekly time frame is neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Today, we continue to stick to this assessment for Ethereum, which is mainly influenced by bearish fundamental factors like high-interest rates, quantitative tightening, and the prospect of a severe global recession. Due to the persistence of these factors, we have no reason to change our bearish medium-term and long-term views on the market.
For the short-term, we are growing increasingly bearish on ETHUSD. In the past 24 hours, Ethereum fell 8%, breaking below the immediate support and reaching bearish territory. This development is particularly bearish as it coincides with the RSI breaking below 70 points and other technical indicators turning bearish. Accordingly, we stick to our price target of 1 000 USD.
Illustration 1.01
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bearish. DM+ and DM- are due to perform bearish crossover, which will further bolster the bearish case for ETHUSD. Overall, the daily time frame is bearish.
Illustration 1.02
Technical analysis - weekly time frame
RSI is bearish. MACD points to the upside but stays in the bearish zone. Stochastic is bullish. DM+ and DM- are bearish. Overall, the weekly time frame is neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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