ALERT Ethereum Deathcross Approaching

Ethereum is closely approaching the dreaded deathcross event, where the 50 day sma crosses under the 200 day sma. When this popular indicator lights up, we now the bears have been pushing price down hard in the previous weeks. The fact is though, if you're trading for more than a few weeks, you already know this! :_0 It's been a painful year so far for HODL'er's around the world, for sure.

On a positive note, ETH bulls have previously come out to support price and reverse momentum before or immediately as the moving averages begin to cross. Unlike LINKUSD, BTCUSD, and ADAUSD which are struggling to reclaim ground and trigger a Goldencross event, the bullish side of this indicator. eg, August 2021, November 2020, and multiple other times in 2020 before that.

If Ethereum fails to trade above the 200 day ema, it could be a signal of weakening support for Ethereum, and more generally could indicate we haven't found the bottom yet. A disaster for the market as a whole. Similar to many coins though, ETH has just pulled away from a nice W + retest pattern in the 4h charts or otherwise arguably a reverse head and shoulders. Either way, generally a bullish signal for day-traders looking for good opportunities to go LONG. A retest of the 3150-3200 levels should be expected in the coming days, once we find the resistance for the day. Decent candidates range for resistance is $3280-$3300, which align with VPVR and the lower market support band that currently acts resistance, since we started trading in bearish territory back at the start of the year.

FIB golden pocket is at 3050-$3100, which acted as significant support as we dropped through December, all the way through to this morning when we pushed off from it, up %5.5 at the time of writing.

$3450-$3500 will act as strong resistance, which we will need to overcome if we don't want to return back for a retest of $3000 before potentially heading much deeper into what is pretty clearly a bear-market environment.

If momentum continues, market makers will reclaim liquidity left behind at 3500, 3800, 4250 in the coming weeks. The pull back for over-margined LONG traders will have been painful, for sure. It will also have proven to be a excellent opportunities to accumulate ETH.


Don't get liquidated my friends! Make sure you have sell into strength, as prices rise so you can have your buy-limits set up and profit from the volatility, not lose your mind!