ETH is starting to paint quite a bearish chart, at least for the next few days.
We are brushing against the support line of this large wedge and if the support at this Fib level fails (around $1,750) then we have quite a way to drop, up until the old ATH of $1,400.
My bias is bearish for several reasons:
1. Decreasing volume... we lost some momentum
2. MACD on daily just did a negative cross... bearish
3. RSI paints a bearish divergence (lower RSI, higher price)
However, last time this happened, we dropped, recovered and pumped higher... can this happen again... yes. But if we lose our support here, we will fall lower which may present a great buy opportunity for longs.
What is curious is that BTC looks bullish (see my BTC idea below), however, a drop in BTC, will surely make ETH fall, hard. So the market is sending mixed messages, alts are overextended and BTC may pop above $50k... if that happens I see a lot of money going into BTC while alts watch.
We are at a very important level and some traders took profit here, but... long term, we have a long way up. So don't sell your long term stack here, you will regret it.
Like and follow if you liked this idea. Also join my crypto community to stay in touch!
We are brushing against the support line of this large wedge and if the support at this Fib level fails (around $1,750) then we have quite a way to drop, up until the old ATH of $1,400.
My bias is bearish for several reasons:
1. Decreasing volume... we lost some momentum
2. MACD on daily just did a negative cross... bearish
3. RSI paints a bearish divergence (lower RSI, higher price)
However, last time this happened, we dropped, recovered and pumped higher... can this happen again... yes. But if we lose our support here, we will fall lower which may present a great buy opportunity for longs.
What is curious is that BTC looks bullish (see my BTC idea below), however, a drop in BTC, will surely make ETH fall, hard. So the market is sending mixed messages, alts are overextended and BTC may pop above $50k... if that happens I see a lot of money going into BTC while alts watch.
We are at a very important level and some traders took profit here, but... long term, we have a long way up. So don't sell your long term stack here, you will regret it.
Like and follow if you liked this idea. Also join my crypto community to stay in touch!
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