ETH/USD forms double top, slides below 21-EMA again

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
ETHUSD forms the double top pattern on intraday chart plotting with top 1 at 745.00 & top 2 at 739.85 with rising trend line (refer 2H chart).

Bearish engulfing patterns have occurred on (intraday, weekly terms) at 693.29 and 825.30 levels respectively, these bearish patterns have hampered the previous bullish sentiments.

On the flip side, the hammer pattern has occurred on weekly and intraday plotting at 810.46 and 696.52 levels.

Consequently, the trend forms whipsaws after that brief downswings. The whipsaws after downtrend are deemed as a bullish signal and vice versa (refer 2H chart), the price behavior has been spiking through rising trend line (see 2H chart). Both leading and lagging indicators are not indicating the momentum and trend confirmation on this timeframe.

While on the intermediary terms, the downtrend has constantly slid below 7EMAs (on the weekly chart), both leading & lagging indicators signal weakness on this timeframe, bears plummet the current prices below 21EMAs.

Both leading oscillators ( RSI & stochastic curves) show downward convergence to signal strength and momentum in the bearish trend .

To substantiate this stance, MACD has also shown bearish crossover to indicate downtrend to prolong further,

Well, for now, further price dips are likely only on break-below strong support at 638.11 levels

While on the other hand, long-term traders and investors should wait for a bounce back above EMAs after testing this strong support.

Hence, contemplating above technical rationale, one can think of shorting etherium against the dollar by snapping deceptive rallies below 713.05 on trading terms.

Currency Strength Index: FxWirePro’s hourly USD spot index has shown 8 (which is neutral ahead of the data announcements of US CPI prints followed by 30Y bond auction) while articulating (at 07:56 GMT )
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