ETHUSD daily guidance is cautiously bearish. Recommended ratio: 5% ETH, 95% CASH.
Happy Veterans Day to those who served.
*MASS CRYPTO DELEVERAGING WATCH. The FTX/Alameda meltdown isn't over yet, and keeps getting crazier with speculation that the troubles at Alameda Research started to amplify after the LUNA death spiral caused SBF to funnel funds from FTX to Alameda and to "altruistically" acquire the insolvent exchanges and lending firms that were overly exposed in order to protect Alameda's own FTT-collateralized loans. The fact that Alameda was essentially comprised of 9 drug-fueled lovers living in the Bahamas is astonishing enough, but even weirder is that both of SBF's parents are "regulatory compliance experts". One thing about this that perhaps changed how it all could've gone down was CZ's (Binance) involvement. I'm under the impression that the crypto crash wouldn't have been so sudden and widespread if CZ wouldn't have tweeted about FTX's struggles, how he was looking to rescue them and then labeling them beyond rescue all within the span of two days. I totally get that CZ likely did it for brand posturing and marketing but he may have also benefited from the massive price increase to BNB after the initial tweet offering to acquire FTX. Fair game though. It's a bit too early to try to predict the end of this mass deleveraging that is currently taking place throughout the Crypto industry and more industry players may go down from this in the coming days, so it's suggested to stay in cash until there's some kind of light at the end of the tunnel. The UofM November Consumer Sentiment Index is 54.7, down from 59.9 in October and likely reflective of the political shift from the Midterm elections.
Key Upcoming Dates: Fourth GDPNow Q4 GDP estimate 11/16; Russia/Ukraine Grain Deal Expiration on 11/19; 2nd Estimate of US Q3 GDP at 830am (EST) 11/30; October PCE Index at 830am EST 12/01 ; Last FOMC Rate Hike Announcement of 2022 at 2pm EST 12/14 .*
Price is currently testing $1270 minor resistance for the third consecutive session after breaking below the 50MA and the uptrend line from June 2022. Volume finished yesterday's session High (moderate) and is currently on track to favor sellers for a second consecutive session if it closes today's session in the red; Price is currently testing the second largest VP supply/demand zone on the chart. Parabolic SAR flips bullish at $1600, this margin is bullish at the moment. RSI is currently trending down at 40 after forming a peak at 43 and will likely aim to test the uptrend line from November 2018 at 37 support in the coming sessions. Stochastic remains bullish and is currently trending up at 33 with no signs of peak formation, it's still technically testing 23 resistance. MACD remains bearish and is currently trending down at -25 as it approaches -46 minor support with no signs of trough formation. ADX is currently trending up slightly at 32 as Price continues to see selling pressure, this is bearish at the moment.
If Price is able to breakout above $1270 minor resistance then it will likely aim to formally retest the 50MA at ~$1395 as resistance. However, if Price is rejected here, it will likely formally retest $1k minor support before potentially falling lower to $776 minor support. Mental Stop Loss: (two consecutive closes above) $1300.
Happy Veterans Day to those who served.
*MASS CRYPTO DELEVERAGING WATCH. The FTX/Alameda meltdown isn't over yet, and keeps getting crazier with speculation that the troubles at Alameda Research started to amplify after the LUNA death spiral caused SBF to funnel funds from FTX to Alameda and to "altruistically" acquire the insolvent exchanges and lending firms that were overly exposed in order to protect Alameda's own FTT-collateralized loans. The fact that Alameda was essentially comprised of 9 drug-fueled lovers living in the Bahamas is astonishing enough, but even weirder is that both of SBF's parents are "regulatory compliance experts". One thing about this that perhaps changed how it all could've gone down was CZ's (Binance) involvement. I'm under the impression that the crypto crash wouldn't have been so sudden and widespread if CZ wouldn't have tweeted about FTX's struggles, how he was looking to rescue them and then labeling them beyond rescue all within the span of two days. I totally get that CZ likely did it for brand posturing and marketing but he may have also benefited from the massive price increase to BNB after the initial tweet offering to acquire FTX. Fair game though. It's a bit too early to try to predict the end of this mass deleveraging that is currently taking place throughout the Crypto industry and more industry players may go down from this in the coming days, so it's suggested to stay in cash until there's some kind of light at the end of the tunnel. The UofM November Consumer Sentiment Index is 54.7, down from 59.9 in October and likely reflective of the political shift from the Midterm elections.
Key Upcoming Dates: Fourth GDPNow Q4 GDP estimate 11/16; Russia/Ukraine Grain Deal Expiration on 11/19; 2nd Estimate of US Q3 GDP at 830am (EST) 11/30; October PCE Index at 830am EST 12/01 ; Last FOMC Rate Hike Announcement of 2022 at 2pm EST 12/14 .*
Price is currently testing $1270 minor resistance for the third consecutive session after breaking below the 50MA and the uptrend line from June 2022. Volume finished yesterday's session High (moderate) and is currently on track to favor sellers for a second consecutive session if it closes today's session in the red; Price is currently testing the second largest VP supply/demand zone on the chart. Parabolic SAR flips bullish at $1600, this margin is bullish at the moment. RSI is currently trending down at 40 after forming a peak at 43 and will likely aim to test the uptrend line from November 2018 at 37 support in the coming sessions. Stochastic remains bullish and is currently trending up at 33 with no signs of peak formation, it's still technically testing 23 resistance. MACD remains bearish and is currently trending down at -25 as it approaches -46 minor support with no signs of trough formation. ADX is currently trending up slightly at 32 as Price continues to see selling pressure, this is bearish at the moment.
If Price is able to breakout above $1270 minor resistance then it will likely aim to formally retest the 50MA at ~$1395 as resistance. However, if Price is rejected here, it will likely formally retest $1k minor support before potentially falling lower to $776 minor support. Mental Stop Loss: (two consecutive closes above) $1300.