Ethereum - My take in September

INDEX:ETHUSD   Ethereum / U.S. Dollar
Since the target of the “Ethereum to $2k” idea was achieved there’s been a lot of messages asking, what’s happening? As price action collapses the tensions rise. Two things occurred:

1) The majority asking the question do not have a strategy. You will always lose money without one.

2) The majority asking this question do NOT have a strategy. Now I realised I’ve repeated myself but it is such a huge fundamental point I thought it was worth mentioning twice.

On current price action…

For the bulls. You do not want to see a weekly close below $1420. IF that happens, if a candle body closes at this level, it is months and months of downtrend towards $600

For the bears. You do not want to see a weekly close above $2000. IF that happens, price action is off to $6k.

So which is it? I don’t know. No one does and there’s absolutely no possible forecast to be made until the above weekly chart resolves by early November. Price action under $1420 increases the probability of the log growth curve lower channel being tested.

Any hints which way price action might go?

First question, what is the trend?
It is very clear, lower highs lower lows. Price action has been in a downtrend ever since the 2-day death cross in April.

2-day chart

As a general rule.. we do not invest in assets with broken market structure. Trading is fine in bear market but you've got to know the exits. 100% gain in a bear market is amazing, like on the $2k idea and yet has left many people frustrated.

Second question - Look left - where is the support and resistance?

There are two signifiant levels $1100 (which saw a recent bounce) and $660. IF $1420 fails, expect a retest of $1100. If $1100 fails then price action WILL test $660.

It is worth noting that the golden pocket 618 Fibonacci level is at the second support level . Previous bear markets for Ethereum tested the golden pocket.

That's all!

Comment: There goes a weekly close of $1420. Another weekly candle body closing under this level would seal the deal for <$1k price action.

The 5-day BTC pair confirms a bearish divergence.

There are some alt-tokens printing the exact opposite. Can you find them???




Allow 3-6 months on ideas. Not investment advice. DYOR

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