Ethereum - The rally loses momentum quickly
Recently, we expressed our lack of belief in the Ethereum price rally. Indeed, when it traded between 1500 and 1600 USD, we stated the price started to appear attractive again for the short position re-entry (accompanied by tight-stop loss).
Since then, Ethereum stalled and dropped approximately 7%. Nevertheless, we continue to be bearish on the pair as we foresee threats from fundamental and technical factors.
Accordingly, we would like to set the price target for ETHUSD at 1000 USD. However, our bias will be invalidated if the price retraces above its recent high at 1 663.53 USD.
Technical analysis - daily time frame
RSI, MACD, and Stochastic turned bearish. DM+ and DM- are due to perform bearish crossover. Overall, the daily time frame is bearish.
Illustration 1.01
We are looking for the bearish retracement below the immediate support level. These developments are structurally similar to BTCUSD. That will further confirm our bearish thesis.
Technical analysis - weekly time frame
The RSI stalls. The Stochastic points to the upside but stays in the lower area. The MACD is neutral. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Since then, Ethereum stalled and dropped approximately 7%. Nevertheless, we continue to be bearish on the pair as we foresee threats from fundamental and technical factors.
Accordingly, we would like to set the price target for ETHUSD at 1000 USD. However, our bias will be invalidated if the price retraces above its recent high at 1 663.53 USD.
Technical analysis - daily time frame
RSI, MACD, and Stochastic turned bearish. DM+ and DM- are due to perform bearish crossover. Overall, the daily time frame is bearish.
Illustration 1.01
We are looking for the bearish retracement below the immediate support level. These developments are structurally similar to BTCUSD. That will further confirm our bearish thesis.
Technical analysis - weekly time frame
The RSI stalls. The Stochastic points to the upside but stays in the lower area. The MACD is neutral. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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