Ethereum is approaching the sloping resistance after the period of sideways-moving price action. The breakout above the resistance will be bullish for the short term. However, we do remain bearish beyond that and maintain our price targets of 1 000 USD and 900 USD.
Our reasoning is based on the fact that the FED will continue to pursue economic tightening, predestining the current rally to fall. In addition to that, our view is also supported by the ongoing global recession and geopolitical turmoil leading to problems on all economic fronts.
Therefore, we voice a word of caution to market participants as we do not believe the market has bottomed out and the primary trend has reversed. With that being said, we will pay close attention to the FED meeting next week.
Illustration 1.01
Illustration 1.01 shows the daily chart of ETHUSD and the downward-sloping channel. The price is approaching the upper bound of the channel, the sloping resistance. If the breakout above it occurs, we will pay close attention to the volume and if it will be sufficient to propel the price higher.
Technical analysis - daily time frame
RSI and Stochastic are bullish. MACD is also bullish; if it breaks above 0 points, it will further bolster the bullish case in the short term. DM+ and DM- are bearish. Overall, the daily time frame is slightly bullish, while the breakout below the short-term support will be bearish.
Illustration 1.02
The picture above shows the daily chart of ETHUSD and simple support/resistance levels. The breakout above the short-term resistance will be bullish.
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bearish. MACD points to the upside but stays in the bearish zone. 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.
Our reasoning is based on the fact that the FED will continue to pursue economic tightening, predestining the current rally to fall. In addition to that, our view is also supported by the ongoing global recession and geopolitical turmoil leading to problems on all economic fronts.
Therefore, we voice a word of caution to market participants as we do not believe the market has bottomed out and the primary trend has reversed. With that being said, we will pay close attention to the FED meeting next week.
Illustration 1.01
Technical analysis - daily time frame
RSI and Stochastic are bullish. MACD is also bullish; if it breaks above 0 points, it will further bolster the bullish case in the short term. DM+ and DM- are bearish. Overall, the daily time frame is slightly bullish, while the breakout below the short-term support will be bearish.
Illustration 1.02
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bearish. MACD points to the upside but stays in the bearish zone. 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.
Trade ist aktiv:
We remain bearish as we speculate the bear market rally might be near its end, with the FED set to hike rates tomorrow, potentially crashing the market. Due to that, we raise our level of alert.
