Ethereum - Short term bullish, long term bearish

Over the weekend, Ethereum reached our price target and plunged to a new low at 879.80 USD. Similarly to Bitcoin, we are no longer bearish on Ethereum. In all honesty, we are unsure where it is headed next. Although we think the rally might continue a little bit further. Despite that, negative fundamental factors remain in place. The FED is expected to raise interest rates next month and put more pressure on the overall economy. As a result, we speculate that the bottom was not set in for ETHUSD. Therefore, we will monitor the price action closely. At the moment, we abstain from setting a price target for ETHUSD.

Technical analysis - daily time frame
RSI reversed from the oversold zone, hinting at the price bounce. MACD flattens, which is bullish. Stochastic remains bearish. DM+ and DM- are bearish. Overall, the daily time frame is less bearish than a week ago; indeed, we think it suggests the possibility of another “bear market rally”.

Illustration 1.01

Here is the triangle pattern we showed in our previous ideas. We stated that we expected the breakout to the downside. The breakout took place, and Ethereum fell by more than 48%. The declining volume hints at decreasing selling pressure.

Technical analysis - weekly time frame
RSI is oversold. Stochastic and MACD are bearish. DM+ and DM- are also bearish. Overall, the weekly time frame remains 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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade active:

We set a new price target for ETHUSD at 1000 USD.

Trade closed: target reached:

Our price target of 1000 USD was hit.