People are calling the bottom, yet I am convinced that the bottom hasn't been nearly reached yet. I am going to explain to you why I think Ethereum is soon to drop heavily on to the ground.
First of all, this is what we're looking for in a bottom: A candlestick with a ridiculous Wick revealing major movement in both directions. We currently can't observe such a candle.
Now let's take a closer look at the overall bear market we're in. Using Elliot Waves we can see that Ethereum still has one extension wave left for completion.
I set the hypothetical bottom at the POC, I guess the adequate Interval is between USD 5 - USD 30.
Yes, single digit may be possible!
In classical technical analysis this new higher low and higher high may indicate a trend reversal. I, however, see this current "consolidation" as a normal ABC correction of wave 4 (---> following picture says point Nr 4, should be Nr. 3 though).
I don't believe that it will do the typical ABCDE ascending triangle consolidation because of the Fakeout at the resistance line that got denied and bearish divergences in the MACD.
Daily Chart:
In the 4hour chart the bearish divergence is even more apparent:
The support lines of this MACD trend are holding since March 2018! --> I therefore expect the worst if these get broken.
In addition, we can observe a hidden bearish divergence on the weekly Stoch RSI and RSI (even though it's less clear on the RSI). Also the last weekly candle, (shooting star following two rising candles) looks extremely bearish, but next weeks candle first has to confirm the bearish signal.
Taking a look at the ETH longs we can see that they have reached a new all time high accompanied with bearish divergences and an ascending wedge.
Shorts, on the other hand, are at an extreme low leaving much room open for shorts accumulation
Even if Ethereum manages to blast through the resistance line and reach even higher highs, the bear market isn't over unless it leaves the USD 205 mark far behind and goes beyond 220 USD, as it otherwise it may create a bearish bat, and/or even a bearish flag.
In conclusion, with all these indications in mind, I am extremely bearish on ETH and the overall crypto currency market. What goes up must come down, and if something rises this crazy in the financial markets as crypto did in 2017, it has to crash until it hurts really really bad.
In the end, this is just my analysis and maybe I am wrong, but this is what I'm observing and what I'm concluding since the bubble popped a year ago.
First of all, this is what we're looking for in a bottom: A candlestick with a ridiculous Wick revealing major movement in both directions. We currently can't observe such a candle.
Now let's take a closer look at the overall bear market we're in. Using Elliot Waves we can see that Ethereum still has one extension wave left for completion.
I set the hypothetical bottom at the POC, I guess the adequate Interval is between USD 5 - USD 30.
Yes, single digit may be possible!
In classical technical analysis this new higher low and higher high may indicate a trend reversal. I, however, see this current "consolidation" as a normal ABC correction of wave 4 (---> following picture says point Nr 4, should be Nr. 3 though).
I don't believe that it will do the typical ABCDE ascending triangle consolidation because of the Fakeout at the resistance line that got denied and bearish divergences in the MACD.
Daily Chart:
In the 4hour chart the bearish divergence is even more apparent:
The support lines of this MACD trend are holding since March 2018! --> I therefore expect the worst if these get broken.
In addition, we can observe a hidden bearish divergence on the weekly Stoch RSI and RSI (even though it's less clear on the RSI). Also the last weekly candle, (shooting star following two rising candles) looks extremely bearish, but next weeks candle first has to confirm the bearish signal.
Taking a look at the ETH longs we can see that they have reached a new all time high accompanied with bearish divergences and an ascending wedge.
Shorts, on the other hand, are at an extreme low leaving much room open for shorts accumulation
Even if Ethereum manages to blast through the resistance line and reach even higher highs, the bear market isn't over unless it leaves the USD 205 mark far behind and goes beyond 220 USD, as it otherwise it may create a bearish bat, and/or even a bearish flag.
In conclusion, with all these indications in mind, I am extremely bearish on ETH and the overall crypto currency market. What goes up must come down, and if something rises this crazy in the financial markets as crypto did in 2017, it has to crash until it hurts really really bad.
In the end, this is just my analysis and maybe I am wrong, but this is what I'm observing and what I'm concluding since the bubble popped a year ago.