Ethereum - Low monthly volume susggests no trend reversal
Like Bitcoin, Ethereum has been mostly choppy for the past two weeks. It has been oscillating predominantly between 1 250 USD and 1 400 USD in a reflection of the indecisiveness of market participants. Despite that, we are committed to our bearish thesis and expect ETHUSD to hit our price target of 1 000 USD by the end of Q4 2022.
Our views are based on a combination of fundamental and technical factors. In our opinion, driving market forces like interest rates and economic tightening will continue to weigh on the market, dragging it deeper into the bear market territory. Additionally, technical factors tell that same story, which points to the bear market rally at the moment rather than trend reversal and double bottom formation. Moreover, low monthly volumes hint at the fact that Ethereum is not gaining much interest among new investors, making the primary trend reversal very improbable.
Furthermore, we expect market volatility to pick up from here, leading to high anxiety and more risk aversion. Because of that, we have no reason to change our bias and stick to our price targets of 1 000 USD and 900 USD.
Illustration 1.01
Illustration 1.01 shows the monthly chart of ETHUSD. The yellow arrow points to the low monthly volumes.
Technical analysis - daily time frame
RSI is turning neutral. Stochastic is bullish. MACD points to the upside but stays in the bearish area. DM+ and DM- are bearish. Overall, the daily time frame is bearish
Illustration 1.02
Illustration 1.02 displays the daily chart of ETHUSD and simple support and resistance levels.
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bearish. MACD points to the upside but stays in the bearish territory. DM+ and DM- stay bearish. Overall, the weekly time frame is bearish.
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.
Our views are based on a combination of fundamental and technical factors. In our opinion, driving market forces like interest rates and economic tightening will continue to weigh on the market, dragging it deeper into the bear market territory. Additionally, technical factors tell that same story, which points to the bear market rally at the moment rather than trend reversal and double bottom formation. Moreover, low monthly volumes hint at the fact that Ethereum is not gaining much interest among new investors, making the primary trend reversal very improbable.
Furthermore, we expect market volatility to pick up from here, leading to high anxiety and more risk aversion. Because of that, we have no reason to change our bias and stick to our price targets of 1 000 USD and 900 USD.
Illustration 1.01
Technical analysis - daily time frame
RSI is turning neutral. Stochastic is bullish. MACD points to the upside but stays in the bearish area. DM+ and DM- are bearish. Overall, the daily time frame is bearish
Illustration 1.02
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bearish. MACD points to the upside but stays in the bearish territory. DM+ and DM- stay bearish. Overall, the weekly time frame is bearish.
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.
Trade active:
We expect ETHUSD to follow in Bitcoin's footsteps and start breaking down soon.
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