Taking a look at our Ethereum Weekly chart we are still moving to the downside but i feel this could be the final week of downside before rebounding to the upside, we have had a total of 7 weeks worth of downtrending candles and that could be coming to an end very soon. we are trading inside of a bullish pennant which historically has lead to upside breakouts, we are just about at the apex point but there is a chance we have 1 more weekly candle before breaking to the upside! We are approaching the 0.2 FIB which is an important level for us to hold going into our next weekly close next sunday. Another few key levels i am looking for us to hold is, the 20 EMA (red) (not as important) the bottom of the bullish pennant or risk falling out the bottom, the midline on the bollinger bands is a pretty big one we gotta hold onto here giving us the chance for a rally to that top band. Now if we did by chance fall to the downside there is one level that is mega important and that is the 50 day EMA (pink) looking at it now its looking like we will be pushing up and above the 0.3 FIB, so if we did fall to the downside these 2 levels would be a crucial hold, either the 50 day will be right overtop of the 0.3 FIB or we will be right below this FIB, this should give us that ultimate cushion for getting a bounce and reversal. Another nice reversal spot we have if we do decide to go down is the support at 3324$, we have had tons of price action on this level back in june-sept and i would say this level is pretty rock solid especially if we only came down to test it once or twice! Overall with the support levels we have a big drop is not really on the table i would say personally, around 3050$ would be my lowest target for a further correction, but i don't think we will even come close to there realistically, the amount of downside we have had over the past 7 weeks is definitely enough for a normal correction and i am looking for that upside breakout of this bull pennant. Last thing lets take a look at the Stoch RSI, we are coming down very fast and we are inside the oversold zone and almost bottomed out, i wouldn't be surprised to see the formation of a reversal coming into this weeks close on sunday, we want to see something similar to what i have drawn out here, a strong bull cross with the blue moving ontop of the orange, even if we don't see the cross happen next sunday i would like to see both lines start to flatten out and tick upwards! Not financial advice just my opinion!
