Despite proving our assumptions about the impending drop wrong in late October (when we highlighted some similarities between Ethereum and other cryptocurrencies), we have not backtracked on our bearish calls. We stuck to our opinion that ETHUSD was attractive to short between 1500$ and 1600$ (which we noted already during the summer) and continued to reason that the rally was characteristic of one in the bear market.
Our words came true once again as the price of Ethereum came crashing with the rest of the market, and it made a low of 1 071.50$ yesterday. We continue to be bearish on ETHUSD and maintain our price targets of 1 000$ and 900$.
Illustration 1.01
The image above shows the weekly chart of ETHUSD and two simple moving averages. Yellow arrows indicate strong corrections of the downtrend.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are bearish. Overall, the daily time frame is bearish.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Our words came true once again as the price of Ethereum came crashing with the rest of the market, and it made a low of 1 071.50$ yesterday. We continue to be bearish on ETHUSD and maintain our price targets of 1 000$ and 900$.
Illustration 1.01
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are bearish. Overall, the daily time frame is bearish.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all 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.
