ETH/USD Daily neutral with a bearish bias. Bounce Watch. Recommended ratio: 40% ETH, 60% cash. Price is currently testing $1941 support after briefly touching $1700 and is still technically testing the 50/50 uptrend line from February 2017 (~$2100) as support (but is on the verge of losing it). Volume dropped by almost half and is now moderate and on track to break the two day streak of seller dominance if it can close today in the green. Parabolic SAR flips bullish at $2500, this margin is neutral at the moment. RSI is currently trending up at 37 after bouncing from the uptrend line from 01/22/22; the next resistance is at 36.91. Stochastic is currently regressing to a bearish crossover at 7.36, the next support is at max bottom and the next resistance 17.81. MACD remains bearish and is trending down slightly at -241.22, the ATL is at -318.82. ADX is currently trending up at 40 as Price continues to see sell pressure, this is bearish. If Price can establish support at $1941, it will have to reclaim the uptrend line from February 2017 to continue the bull run. However, if Price breaks down below $1941, this will likely take it down to test $1379 support before potentially going lower (would confirm a full blown recession is underway). If there is more widescale LUNA/UST type panic this could potentially take price down to $400 to retest the major February 2017 trendline for the first time since July 2020. Mental Stop Loss: (two consecutive closes above) $2149.
**Interesting to note that a massive (but weak) Head and Shoulders formation developed in tandem with the 2021 Covid QE... and now that the Fed is doing QT and raising funds rate, the H&S completes?... almost as if the Fed stimulated all PA above $1400... which in a way, when it was that cheap to borrow money, there was a lot of excess (froth if you will)... when the Fed decided to start selling/running MBS and treasury securities and raise interest rates it was in part to curb this excessive speculation that led to such high prices in such a little time... it's rather unfortunate but the markets are the whim of the Fed yet again, and if it is isn't obvious yet, the Fed has been reacting to lagging data.**
**Interesting to note that a massive (but weak) Head and Shoulders formation developed in tandem with the 2021 Covid QE... and now that the Fed is doing QT and raising funds rate, the H&S completes?... almost as if the Fed stimulated all PA above $1400... which in a way, when it was that cheap to borrow money, there was a lot of excess (froth if you will)... when the Fed decided to start selling/running MBS and treasury securities and raise interest rates it was in part to curb this excessive speculation that led to such high prices in such a little time... it's rather unfortunate but the markets are the whim of the Fed yet again, and if it is isn't obvious yet, the Fed has been reacting to lagging data.**