Hello traders! Today I will explain Ethereum with technical analysis why a bear dump is incoming! Do not forget to like and subscribe.
Here are the bearish factors to take into account:
1. ⚠Elliot 5 wave completed, profit-taking and distribution taking place The Elliot 5-wave pattern has completed, signaling that the trend is mature already. We can also notice that there was relatively strong bearish volume at the top of 1780$. Lots of profit targets are around this area. Very bearish state. Never buy the top!
2. ⚠MA Channel break with a volume spike The MA channel was broken with decisive selling volume. This should alert of a possible reversal.
3. ⚠EffDi bearish Divergence, in line and dots! The Effective Divergence Indicator shows a divergence with price. While the price formed higher highs, EffDi made a lower high. This is very bearish. The EffDi histogram also had a down spike signaling the bear trend is coming.
4. ⚠Ethereum cycle: Beat BTC in terms of performance, then slack off We may all notice that ETH likes to perform better than BTCUSD in bull runs, then after, ETH selling takes place. Looking at the technical evidence above, ETH may be in the 'slack off' phase.
This is very bearish. Ethereum is very overbought and buying a coin at the top is an illogical thing to do.
However, we still need confirmation. We may wait for the EffDi line to breach the light blue line in the chart. Also, we may wait for the 0.236 Fib to break before entering the short.
😀Good luck guys! What are your opinions on Eth? Tell me in the comments. Do not forget to like and follow! 😀