Etheruem / USD - *Swing trade opportunity*

Ethereum is overbought and on the verge of hitting its previous all time high from January 2018 if not already. Currently price action has delivered a 1350% / 14x return in only 9 months.

On the weekly chart above there is a number of indicators informing us price action is overbought with limited probability of further upside whilst the risk of downside is high. Although price action is in an uptrend the 21-week moving average bull market support is 55% below - that’s $650.

1st target $750

Trade active

Comment:

Evidence is emerging buyers of Ethereum are becoming exhausted as the weekly candle closed lower than it opened. The psychology here is fascinating, sellers pushed price action down, buyers came in (who buys an asset after a 10x gain in such little time?!) pushed price up but were unable to create a new high. As bearish as it gets.

Trade closed manually