Ethereum - Dip buyers are to be punished again

Similarly to Bitcoin, Ethereum enjoys the temporary lift up from the return of risk apettite and climbing stock market. We expect the bear market rally in the stock market to be short-lived. Therefore, we have no reason to change our medium and long-term outlook on Ethereum (we remain bearish). We expect weakness in the cryptocurrency to stay persistent throughout 2022 as fundamental factors are poised to put more pressure on the economy to Ethereum is highly correlated.

Technical analysis - daily time frame
RSI, Stochastics, and MACD are bullish; however, MACD stays in the bearish area, and Stochastics oscillates in the bearish area. The decline in the ADX reflects a temporary relief. DM+ and DM- are bearish.

Illustration 1.01
The retracement to 20-day SMA raises caution once again. The volume also does not tell a positive story.

Technical analysis - weekly time frame
RSI, MACD, and Stochastics are bearish. DM+ and DM- are bearish too. The ADX increases, suggesting that the bearish trend is not done. Overall, the weekly time frame stays bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.