Hi everyone. As from my previous post on BTC I had explained that, if 50 EMA on weekly would break we would see a big drop. And as always when BTC drops it brings the whole market with it. This made me want to take a look at ETH, since it has lots of things happening,fundamentally, such as staking, beacon chain, istanbul upgrade and lot of other projects progress on the ETH DeFi ecosystem. Even tough news has impact on price, lets just focus on what we know best and look at the charts.
If we look at the chart on the right we could see how the support level has formed on the weekly chart and how we have been testing it from both sides as support and resistance.If we take a deeper look on the daily time frame, in red circles you could see we have tested it as resistance and in green we have tested as support. People might think we have tested it as support as many times and were not able to break it and believe that this makes it stronger. However it is the opposite case! The more you test same levels it is more likely that you break it.
What is happening right now. I believe we are moving inside the channel that is drawn in red.(We might have broken out with hype but in the end we fell right back into it.)I believe we might test back up to the top of the red line, which also is currently aligned with 200 EMA on daily,which i do not think we can break it, then will test bottom of the channel. It would be a risky move to enter a position to wait a bounce since,If we do not make a move to the top of the channel, we are likely to see 140 leves for ETH.
I do believe that currently we are forming double bottom for ETH (DEC 18 being the bottom) in the sense that we wont be able to see ETH at these levels again sense. Even though we wont see DEC 18 levels i do believe there is still a little more down side for ETH.
As always just a thought not an advice!
Previous analysis;
If we look at the chart on the right we could see how the support level has formed on the weekly chart and how we have been testing it from both sides as support and resistance.If we take a deeper look on the daily time frame, in red circles you could see we have tested it as resistance and in green we have tested as support. People might think we have tested it as support as many times and were not able to break it and believe that this makes it stronger. However it is the opposite case! The more you test same levels it is more likely that you break it.
What is happening right now. I believe we are moving inside the channel that is drawn in red.(We might have broken out with hype but in the end we fell right back into it.)I believe we might test back up to the top of the red line, which also is currently aligned with 200 EMA on daily,which i do not think we can break it, then will test bottom of the channel. It would be a risky move to enter a position to wait a bounce since,If we do not make a move to the top of the channel, we are likely to see 140 leves for ETH.
I do believe that currently we are forming double bottom for ETH (DEC 18 being the bottom) in the sense that we wont be able to see ETH at these levels again sense. Even though we wont see DEC 18 levels i do believe there is still a little more down side for ETH.
As always just a thought not an advice!
Previous analysis;
