ETH/USD Daily cautiously bearish. *The Descending Triangle completed its formation and ended in a breakdown.*Recommended ratio: 15% ETH, 85% cash. Price is currently testing $1711 minor support (new) after breaking down out of the Descending Triangle (took 13 sessions to complete). Volume remains moderate (low) and is currently on track to favor sellers for three consecutive sessions if it can close today in the red. Parabolic SAR flips bullish at $2110, this margin is mildly bullish. RSI is currently trending down at 29.68 as it quickly approaches a retest of the uptrend line from 01/22/22 at ~26. Stochastic remains bearish and is currently trending down at 36.74 but is still technically testing 46.76 support; the next support is at 22.98. MACD remains bullish and is currently on the verge of regressing (after five bullish sessions) to a bearish crossover at -223 as it tests the Descending Trendline from 04/04/22 as resistance; if this crossover is successful it would imply a rejection at the Descending Trendline and this would be very bearish because the next support is at the ATL (-318.82). ADX is currently trending up at 49 as Price is falling, this is bearish. If Price is able to establish support here at $1711 minor support, then it will likely test $1941 support-turned-resistance. However, if Price continues to break down here, it will likely test $1426 support before potentially falling lower. Mental Stop Loss: (two consecutive closes above) $1941.
Do you feel like we are going to continue to go lower or do you think we may see a bounce upwards from here? Trying to determine if I should swap my eth to usdc or hold
dailytaguy
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@TylerWayne10, watching the MACD tonight, a bearish crossover would imply that it still respects the downtrend and Price would likely see more downward pressure in the short-medium term... equities and cryptos have decoupled this week (aside from maybe Dogecoin haha), who knows by how much yet
TylerWayne10
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@dailytaguy, really appreciate the feedback. Im just so torn on what to do
dailytaguy
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@TylerWayne10, no worries I appreciate you reading, if support doesn't hold here looks like it's gonna be a weekend crypto dump... but bulls aren't done trying yet
dailytaguy
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@TylerWayne10, also, just generally speaking, if you're super torn it's usually good to sit on cash and wait till the set up shows itself... better to miss out on a few percentage points of a rally than to sit through a potential 20% drop... not saying go all cash but maybe majority cash...
TylerWayne10
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@dailytaguy, appreciate you. Thats where im torn. All my assets are currently in ETH. I obviously didn't sell when I should have and told myself to at 2900 so now I'm trying to figure out if I swap to USDC or if we are gonna go up some. I just would hate to have to get back into eth with a loss
dailytaguy
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@TylerWayne10, I'd say within crypto that's the most safe hedge considering the bullishness leading up to the hopeful merge in August... aside from that, fortunately Wash Sale rule doesn't apply to crypto (yet) so it's not necessarily bad to sell at a loss if you think it's going lower... additionally depending on how you're taxed, sometimes loss harvesting is strategic
dailytaguy
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@TylerWayne10, looking good short term... beware Sunday/Monday bull trap but aside from that looking a bit bullish here