Analysis of the downtrend of Ethereum signaling for one more leg down.
1D chart is showing clear downtrend. Elliot wave analysis shown resistance level around the 38.2% Fibonacci – usually the 4th corrective wave, which means we should expect one more wave down (5).
4H chart printing an ascending pattern – ascending triangle or a bear flag. Usually Ethereum breaks these patterns according to the trend. 4H RSI is on ascending trendline support. Break of the trendline, we expect price action to follow. Short term EMA’s – 13 (pink) and 21 (light blue) are going to make a bearish cross.
Triangle target would be 1.272 Fibonacci – around $72 (-40%), target of the bear flag – 1.618 Fibonacci – around $50 (-63%).
Confirmation for a short position would be break of the trendline on the RSI and 4H candle close below the ascending trendline support on the price action – below $130. Recommended Stop Loss: $148.
Weekly chart with zone of interest and consolidation
If the price finds support on the ascending trendline and on the RSI trendline, on a break of the horizontal resistance around $152-154, we can expect deeper upward correction to the levels of 61.80% Fibonacci – around $190.70. Confirmation for long entry would be 4H breakout above $132-134 with Stop Loss at $130.
Junior Trader Radi Djuma