The Bears Are in Control — Ethereum! (ETH)

Hi friends! Let's take a look at Ethereum! If you recall from my last post, on ETH, we were hanging out near the "previous high" resistance. We noted how ETH was having trouble breaking above that level, and we discussed how a failure to rally above that resistance, would likely send ETH lower. As you can see, it failed to get above, and then quickly rolled over. Also, several days ago, I proposed that ETH was forming a head and shoulders pattern. Today's drop filled the right shoulder perfectly, and gave us a confirmation breakdown as well. We can see that once the 50 EMA (in orange) was broken, ETH quickly violated the bottom of the uptrend channel (in green) and fell all the way to the 200 EMA (in purple.) You can see that price actually pierced the 200 EMA, but hasn't closed below it yet. Lookng at the MACD, we can see that there has been a tremendous expansion in downside momentum, and sell volume is dominating the chart. So where do we go from here? Well, it all depends on how ETH responds to the 200 EMA. According to the technical data, the sellers are still in control of ETH, so the bias remains to the downside. Until we start to see a reversal on the MACD, a reversal on the chart, a hold of the 200 EMA, or some signs of life from the bulls — the highest propability trade is to the downside. If the 200 EMA is lost, look for initial support to come up around $892. Below that, ETH could slide to the $850 handle, and then, the real prize would be the 61.8% retracement level, at about $777. On the upside, the bulls need to rally off of this 200 EMA, and try to get back into that uptrend channel... Yeah.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media! Good luck trading everyone. Peace!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-