"Ethereum is still in an uptrend, but there are prerequisites for a further decline"
First, let's look at the picture from a positive point of view.
1 - The coin is updating its highs and lows, which means the trend is still up. This means that we are more likely to be satisfied if we looking for purchases
2 - If we assume that Ether not so long ago left the upward triangle, we can expect much more interesting price values. Since if we rely on classic targets after breaking through triangles (the price passes the distance of the triangle itself in the direction of breaking through), then these targets have not yet been achieved (this 7k area is marked with a red line)
3 - Soon almost 1 million Ethers will be burned within a few days, and of course this burning affects the price positively.
Now let's look at the negative prerequisites.
1 - The price has already consolidated below the moving average with a period of 30 and now there is a struggle in the area of the average price for 60 days (two black curves on the chart)
The next target will be the 120-day moving average (blue line) and this correction looks quite normal as if it is a retest of the upper border of the triangle. But as you understand, in this case, we will continue to decline.
2 - You can already see a significant divergence on the MACD indicator. This tells us that the fuel for the upward movement is running out and we can get a significant decrease.
3 - If we pay attention to the volumes, we will see that the entire upward movement since July 20 (marked with a black tick) is accompanied by smaller and smaller volumes. This is not the best sign of a "healthy upward movement" as if the money to buy coins at such prices is running out, which means that the initiative can already be intercepted by bears.
Outcome:
If you are positive about Ether, then you can try buying on this correction until the local minimum is updated (marked with a red checkmark)
If negative - it is too early to make a decision, the initiative is still behind the bulls.
First, let's look at the picture from a positive point of view.
1 - The coin is updating its highs and lows, which means the trend is still up. This means that we are more likely to be satisfied if we looking for purchases
2 - If we assume that Ether not so long ago left the upward triangle, we can expect much more interesting price values. Since if we rely on classic targets after breaking through triangles (the price passes the distance of the triangle itself in the direction of breaking through), then these targets have not yet been achieved (this 7k area is marked with a red line)
3 - Soon almost 1 million Ethers will be burned within a few days, and of course this burning affects the price positively.
Now let's look at the negative prerequisites.
1 - The price has already consolidated below the moving average with a period of 30 and now there is a struggle in the area of the average price for 60 days (two black curves on the chart)
The next target will be the 120-day moving average (blue line) and this correction looks quite normal as if it is a retest of the upper border of the triangle. But as you understand, in this case, we will continue to decline.
2 - You can already see a significant divergence on the MACD indicator. This tells us that the fuel for the upward movement is running out and we can get a significant decrease.
3 - If we pay attention to the volumes, we will see that the entire upward movement since July 20 (marked with a black tick) is accompanied by smaller and smaller volumes. This is not the best sign of a "healthy upward movement" as if the money to buy coins at such prices is running out, which means that the initiative can already be intercepted by bears.
Outcome:
If you are positive about Ether, then you can try buying on this correction until the local minimum is updated (marked with a red checkmark)
If negative - it is too early to make a decision, the initiative is still behind the bulls.