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In this analysis, we take an unbiased stance on Ethereum's Tether pair (USDT), assessing its and probabilities on its .
- To begin with, we can count for the current uptrend leading up to its local top
- Counting Impulse Waves (!2345), we can see that the impulse waves have all already played out
- Considering that the degree of the trend is 70 degrees, a corrective wave count is highly probable, as such steepness in trend is unsustainable
- Based on fibonacci retracements, we could expect a corrective wave to take place down to the 0.382 Fibonacci support
- One thing to notice is that the 0.382 Fibonacci support converges with the at a certain point
- This indicates that even a correction leading down to 340 USDT would still validate the overall
- The indicator demonstrates that prices are way overextended above the original trend, and is due for a correction
- Technical indicators all point to a similar direction
- The ( ) is at overbought levels, having created lower highs and lower lows
- The Moving Average Convergence Divergence ( ) shows decreasing histograms with a potential death cross in play
- The Oscillator has formed a death cross at overbought territories
What We Believe
While Ethereum may be looking to retest and form a lower high in the shorter term charts, technicals on the demonstrate strong signs of the altcoin being overbought, and overextended above a sustainable level of trend. As such, any insignificant breakouts we may see on the shorter time frames could be interpreted as an attempt by bears providing liquidity in the market, and seeking opportunities to maximize their positions at optimum levels.
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