Is the sell-off over? Can there be a further 30% drop?Today's TA will be similar to yesterday's. The pattern appears to be changing again.
It is possible that this was just a 3-day retrace, it is also possible that the price is just temporary bouncing back before it crashes further.
If history thought us anything - cryptos price can plummet without any warning. The current situation looks awfully alike Jan 2018, when all cryptos crashed from All-Time-High and never recovered (~ 3 years). We all know that past performance does not guarantee future results. So what does the future hold?
What can we expect? The good news is that just like ATH, drops come in waves. We just past 1st wave. It could be just a price retrace, it could repeat itself 2-3 days from now (maybe this weekend?). Follow the market, read the data and you just might come victorious. Don`t do that and you will almost certainly lose. We all know that market always wins and on average 95% of traders are not profitable.
At the time of writing ETH price is entering its previous channel price may bounce upwards from there of bounce bach to downwards trend. I believe the current time between 9am GMT (UK open) and 1:30 GMT (US open) will be the crucial moment that will dictate the price flow for the next 2 days.
Scenario 1: If the price bounce upwards and forms support at 1700, then the price will be going upwards with traders trying too hard to close a profitable week.
Scenario 2: If the price bounces back under and forms a strong resistance at 1700, we should expect further drops into the weekend.
Today's technicals:
Forecasted highs are above 1800, unlikely to get there in scenario 2.
Mid-way point indicated at 1750, basically, anything above 1750 will be overpriced and if sustained for at least 2 days, will indicate that we are back to bull run.
Forecasted lows are at 1550 (previous bounce), 1420 fbb, 1350 the lowest strong support and 1230 the bottom of fbb (a must-buy). None of these would be likely in scenario 1.
Have fun trading 🤑
May the odd's be with you! 🏹🎯
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