ETHUSD Daily cautiously bullish. Recommended ratio: 85% ETH, 15% Cash. *MINOR CORRECTION WATCH. Ethereum continues to rally (and should continue to leading up to September) on news that the Merge is likely to be ready for launch on Mainnet 09/19/22. Cryptos continue rallying as Equities are entering a big earnings season and recession fears are being allayed by Putin saying Russia will reopen the Nord Stream pipeline (albeit potentially at lesser capacity) . Yesterday, Congress passed the CHIPS for America Act granting $52b in government subsidies to advance the semiconductor industry in the USA, this briefly boosted chip and tech stocks. Though this still qualifies as a long overdue technical relief rally, it's important to note that Ethereum has reclaimed support of the descending channel from October 2021; because of this it's technically unlikely for ETH to retest $1k until after August if it were to.* Price is currently forming a Bull Flag as it trends down at $1500 after briefly touching $1600, the next resistance (minor) is at $1711. Volume remains Moderate (high) and is currently on track to favor sellers for a second consecutive session if it closes today's session in the red; this would increase the odds of a minor correction to $1427. Parabolic SAR flips bearish at $1127, this margin is mildly bearish at the moment. RSI is currently trending down at 63 after forming a peak at 69 (just below the 50/50 uptrend line from November 2018), the next support is the descending trendline from February 2020 at 55 support. Stochastic remains bearish for a second consecutive session as it trends down at 92, the next support is at 81. MACD remains bullish and is currently trending up at 52 with no signs of peak formation as it continues to make a strong case for flipping 28 resistance to support. ADX is currently trending up slightly at 31 as Price pushes higher, this is mildly bullish. If Price is able to continue up here without touching $1427 first, it will likely test $1711 minor resistance (which will be a critical resistance). However, if Price isn't done completing the Bull Flag, it will likely test $1427 support. Mental Stop Loss: (one close below) $1321.
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Recent downside pressure can also be attributed to news that Tesla sold 75% of their Bitcoin holdings in Q2 (worth approximately $936m at time of sale)
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Correction: The Senate passed a provisional bill 07/19 and will review a final bill before it moves onto the House. But it is widely expected to pass considering the significant bipartisan support early on.