Similar to Bitcoin, Ethereum also started to move sideways recently. At the moment, it trades near the 3036 USD price tag. Currently, we are neutral on ETH; however, if the general stock market continues lower, we think the odds are inclined more toward the downside than the upside. We also foresee fundamental and technical factors putting pressure on a further rise in cryptocurrencies. Among the most prominent foes to ETH is the prospect of higher interest rates in the U.S. and capital rotation into gold from cryptocurrencies, which we predicted a few months ago.
Technical analysis - daily time frame
RSI has a bearish structure, but it started to flatten recently. MACD performed a crossover below 0 points, further bolstering the bearish case for ETH. Additionally, stochastic oscillates in the bearish zone. DM+ and DM- also show bearish conditions in the market, with ADX suggesting the presence of a weak bearish trend. Overall, the daily time frame is neutral to bearish.
Technical analysis - weekly time frame
RSI continues to develop a medium-term bearish structure. MACD is neutral and Stochastic, too, as both see flattening. DM+ and DM- still point to bearish conditions in the market. However, ADX is very low, indicating that no significant trend is present. Overall, the weekly time frame is neutral.
Illustration 1.01
The picture above shows the weekly RSI and its intact bearish structure.
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.
Technical analysis - daily time frame
RSI has a bearish structure, but it started to flatten recently. MACD performed a crossover below 0 points, further bolstering the bearish case for ETH. Additionally, stochastic oscillates in the bearish zone. DM+ and DM- also show bearish conditions in the market, with ADX suggesting the presence of a weak bearish trend. Overall, the daily time frame is neutral to bearish.
Technical analysis - weekly time frame
RSI continues to develop a medium-term bearish structure. MACD is neutral and Stochastic, too, as both see flattening. DM+ and DM- still point to bearish conditions in the market. However, ADX is very low, indicating that no significant trend is present. Overall, the weekly time frame is neutral.
Illustration 1.01
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.
Check us out at www.tradersweekly.com
