ETH bounced off a major support @ $370 area and has escaped the recent downtrend - but is not in the clear yet.
This past 1-2 weeks has been a relief rally in my opinion, alts are seeing the bigger % gains over BTC, but we are in for more pain. With alts again seeing the bigger % - this time at a loss.
We touched an ancient trend line from the $6 region, with a decent bounce, but take a look at what we have in front of us..
200EMA - Daily ( $597 )
100EMA - Daily ( $626 )
$600 psych level
An Obvious x2 Top
.786 Retrace from ATH to our Recent low ( $590 )
Stoch RSI on the daily is looking to make a x2 top - a pattern that has recently resulted in a huge slide - see the red rectangle on the Stoch Indicator
For these reasons, i see ETH making a small leg up to $600 - with $630 being an absolute top, before making a big leg down to local support at $500 - with a likely bottom @ $450
Keep in mind BTC will also be correcting soon - adding fuel to the fire, personally i wont pick up ETH until BTC finishes its correction.
Short Target - $615 Long Target $315
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$615 Short Target Reached
$625 high was very reactionary - was sold almost instantly. This was the 100EMA, and the recently broken trendline. Since ETH did not reclaim that level it signals to me that this is definitely the top. ETH still holding the 200EMA, but with this being the weekend we will not get enough volume to push higher, the market will retrace this weekend and there will be profit taking. A test of the previous support at $500 will be coming soon.