Quick TA on ETHUSD
After the breakout from its ascending channel in May, price action seems to have printed a bullflag. Some may be bullish on ETH breaking the big even of $300.
However, some observations to suggest otherwise for the short term:
- DI crossover imminent, to the bearish side
- MACD printed a clear bearish crossover, heading back for the signal line
- RSI divergence from the most recent highs (higher highs on price, but lower highs on the RSI)
If the price fails to bounce from the lower bound of the channel, failure at this point would likely find itself at the 50-62% fib level or about $180-$200. This is not to state that ETH is falling back into a bearish downtrend, but more likely that a stronger correction is required. Note price is currently well above all three Moving Averages, indicating that an uptrend is still in motion (MACD is still printing higher highs and higher lows). Regardless, general sentiment is long, so unless you enjoy counter-trend trading, i wouldn't go too crazy on shorting this market.
After the breakout from its ascending channel in May, price action seems to have printed a bullflag. Some may be bullish on ETH breaking the big even of $300.
However, some observations to suggest otherwise for the short term:
- DI crossover imminent, to the bearish side
- MACD printed a clear bearish crossover, heading back for the signal line
- RSI divergence from the most recent highs (higher highs on price, but lower highs on the RSI)
If the price fails to bounce from the lower bound of the channel, failure at this point would likely find itself at the 50-62% fib level or about $180-$200. This is not to state that ETH is falling back into a bearish downtrend, but more likely that a stronger correction is required. Note price is currently well above all three Moving Averages, indicating that an uptrend is still in motion (MACD is still printing higher highs and higher lows). Regardless, general sentiment is long, so unless you enjoy counter-trend trading, i wouldn't go too crazy on shorting this market.
