ETH/USDT: Pullback Probability Analysis 1W (Aug. 08)

X Force Global Analysis:

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In this post, we analyse Ethereum's weekly chart, and its probabilities of a correction in the form of a pullback.

Analysis

- To begin with, Ethereum has broken out of two major descending trend line resistances, marked in orange
- Despite the parabolic run over the past few weeks, however, Ethereum hasn't had a real correction take place
- Candlesticks show a long upper wick, indicating signs of strong resistance around the 0.382 Fibonacci retracement resistance
- The Relative Strength Index (RSI) is at overbought territories, at the same level as in Jan. 2018.
- The Moving Average Convergence Divergence (MACD) however, shows good signs of momentum for the bullish trend
- The Stochastic Oscillator is also at overbought territories, having formed a death cross
- There is strong historical support around 355 USDT and 310 USDT
- Even a drastic correction below 300 USDT, down to the 0.236 Fibonacci support would be considered bullish over the long run
- Prices would still be trading above the Exponential Moving Average (EMA) Ribbon, and Ichimoku Cloud

What We Believe

We believe that Ethereum is extremely overbought, and is due for a correction in the form of a pullback. What may appear as dramatic corrections in the short term will most likely not hider with the long term bullish case, as unsustainable trends mostly come to an end.

Let us know what you think in the comment section below

Trade Safe.