Embattled Ethereum Sets Bridge Ablaze — Stands in Middle (ETH)
Hi friends! Welcome to this update analysis on Ethereum! Let's get right to it! Looking at the four hour chart, you can see that ETH has continued to fall from the massive head and shoulders breakdown that occurred. Now, it has dropped to the rising black trendline support, and is building a bear flag. You can see that ETH has actually violated the black trendline on several occasions, inside of the body of this bear flag, so we have effectively weakened the black trendline support level. Additionally, you can see that the 20 EMA (in blue) is making it's way into the flab body. As I mentioned in my previous analyses, the 20 EMA has been the catalyst for former bear flag breakdowns, which are still here on my chart. So, clearly there is a pattern of bear flags, that are forced to breakdown by the resistance that is generated by the 20 EMA. There is currently no technical reason to believe that this pattern wont continue. Therefore, as the 20 EMA moves into this bear flag, we can watch for it to become resistive, pushing price action lower for a breakdown. The size of this bear flag, suggests that price could correct to my downside target of 277.33, should a breakdown ensue. A continuation lower is clearly the most logical forward path. However, if a breakout to the upside of the bear flag materializes, that could indicate a more substantial short-term bottom here. Technically, that is currently an unlikely scenario.
On the MACD, you can see that there has been a bullish crossover, but the bull cross has been formed while price has been in a bearish consolidation. Volume has been on the decline, confirming the bear flag consolidation. Also on the MACD, you can see that a significant bullish divergence is taking place, and the bullish crossover has just occurred right on the rising trendline support of the divergence (green dotted trendline.) However, unless we see a breakout to the upside of this bear flag, those underlying bullish indications are less substantial than the overall picture. Bullish divergences are finicky indicators, and should only be considered when other technical indications confirm the divergence. In this case, it would be a breakout above the bear flag and the 20 EMA. Regardless, the focus is that a break to the downside should occur, carrying ETH down to the support at 277.33.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Peace!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
On the MACD, you can see that there has been a bullish crossover, but the bull cross has been formed while price has been in a bearish consolidation. Volume has been on the decline, confirming the bear flag consolidation. Also on the MACD, you can see that a significant bullish divergence is taking place, and the bullish crossover has just occurred right on the rising trendline support of the divergence (green dotted trendline.) However, unless we see a breakout to the upside of this bear flag, those underlying bullish indications are less substantial than the overall picture. Bullish divergences are finicky indicators, and should only be considered when other technical indications confirm the divergence. In this case, it would be a breakout above the bear flag and the 20 EMA. Regardless, the focus is that a break to the downside should occur, carrying ETH down to the support at 277.33.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Peace!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-