Ethereums been getting beaten down recently following Bitcoins lead and we have been trading within a descending channel like we talked about last time, we had a brief fall out of this channel but have since recovered after finding support at the 0.786 FIB level, we have also regained obvious support at the 2618$ level. We have fallen out the downside of our Bullish pennant but definitely still have the chance to regain it in the coming days. Personally i believe Ethereum is due for a very solid move to the upside sooner than later, one reason is because of the sheer downside we have seen recently, we have had quite the correction overall and an upswing is overdue. Now lets get into some better points of why i think we are due for an upswing, the mean reversion channel if you notice to the left we had a decent period of us being in the oversold area, now after backchecking this indicator we have not seen an oversold moment since earlier into 2020!!! This gives me good reason to believe a grind back upto our mean at 3850$ is overdue. Now if we also look at the RSI we notice on here aswell we were strongly oversold, we have since recovered a little bit and have some nice support below us coming from the yellow simple moving average! The whole goal here overall is too make our way back up and above the midline, this would be very key as we could regain a confirmed uptrend! However when we look at the Wavetrend this makes me feel like we could see either a little sideways movement or a possible little drop before we move back up. We are currently sitting at strong resistance where we are beginning to curl, if we can't break through here a little downside is likely, but we just came out of the buy zone which is a bullish sign so i think if we do fall down a little bit more we could likely see a quicker reversal off the second support i have drawn! Overall still bullish on Ethereum in the short term but especially the long term! Will Update going forward! Not financial advice just my opinion!
