ETH - The last red mile before the sun sets in?
Ethereum has had a bloody couple of months behind it - All time high back to the ground.
It crushed major support areas in 1 and 2.
Now it is approaching bottom 3.
This time might be different. We have a very strong golden cross in the MACD, and an RSI that dipped at 17 and now around 23. That's clearly in the oversold zone. These two indicators by themselves, without even a chart above it, would in theory tell us one thing - b u y.
If Ethereum bounces on that level, it can get ready to break the triangle that is forming there. (also note how Ethereum bounced off off the Fibonacci 78,6% level on March 18th - we have a support both on the longer term trend line, but also on the Fibonacci 78,6% retracement!)
The Stochastic momentum index shows us that there indeed is some red first to come before we hit the support and before we can start to rebound:
I don't think we have to say many more words than this. Can ETH break that support and go even lower? Yes, it can. But the odds are way lower than an apparent bounce. And that bounce is something MACD and RSI are telling us, if not, even yelling.
Conclusion: Ethereum will fall some more (as it does already today) before it will bounce from the support level. After that, it can get ready to beat the triangle. The odds are very much in favour of that scenario. So what are you gonna place as your orders?
PS: this is by no means to be considered as investment / speculation / trading advice, merely a personal objective analysis.
PS2: I would be very grateful if you like the post - gives me some boost to keep posting this free stuff ;)
It crushed major support areas in 1 and 2.
Now it is approaching bottom 3.
This time might be different. We have a very strong golden cross in the MACD, and an RSI that dipped at 17 and now around 23. That's clearly in the oversold zone. These two indicators by themselves, without even a chart above it, would in theory tell us one thing - b u y.
If Ethereum bounces on that level, it can get ready to break the triangle that is forming there. (also note how Ethereum bounced off off the Fibonacci 78,6% level on March 18th - we have a support both on the longer term trend line, but also on the Fibonacci 78,6% retracement!)
The Stochastic momentum index shows us that there indeed is some red first to come before we hit the support and before we can start to rebound:
I don't think we have to say many more words than this. Can ETH break that support and go even lower? Yes, it can. But the odds are way lower than an apparent bounce. And that bounce is something MACD and RSI are telling us, if not, even yelling.
Conclusion: Ethereum will fall some more (as it does already today) before it will bounce from the support level. After that, it can get ready to beat the triangle. The odds are very much in favour of that scenario. So what are you gonna place as your orders?
PS: this is by no means to be considered as investment / speculation / trading advice, merely a personal objective analysis.
PS2: I would be very grateful if you like the post - gives me some boost to keep posting this free stuff ;)
Comment:
PS: you can see we are on the blue horizontal line (Fibonacci 78,6% retracement) and support line 3 - pretty crucial support line.
Comment:
We have one more important support here, that was a resistance first in July and September, and now acts as support.
Comment:
That currently literally catapults us back to June last year (yellow line):
Some more relevant support lines at
- $408
- $319
- $270
- $197
- $141
All else, keep in mind what I said in the original post!
Some more relevant support lines at
- $408
- $319
- $270
- $197
- $141
All else, keep in mind what I said in the original post!
Btw, if we look at the Chande Momentum Oscillator, we seem to have a bullish divergence.
Remains exciting whatsoever.