Technical indicators of $ETH have deteriorated since the weekly update. Let’s have a look closer on the different time frames.
The MACD histogram fell below the May’s bar. RSI started acceleration down. PSAR could flip bearish next. There are still 22 days before June’s closure, but the bearish pressure seem to prevail.
As I mentioned in the Weekly, $ETH tried to rally, but changed the direction and is falling down. The weekly MACD histogram turned negative. The price fell below 8 EMA line. Unless some miraculous rally happens before Saturday, $ETH will form a bearish continuation combo.
The price is sitting on the 100 MA with a good chance to break down. The same for MACD histogram. If it happens in the next day or two, there is a chance of acceleration down.
If there is a sizeable red candle on Wednesday, it would make a Three Black Crows following a Bearish Engulfing. Very very bearish.
Let’s see how $ETH behaves in the next few days.
Forecast from June 5 remains unchanged:
The weekly suggests that $ETH could try to form a bottom and hit as high as 2910. However, until it closes the week above 2910, there would be no bottom formed. Based on the daily, there are two strong resistances at ~2740 and ~2910. Until ETH closes assertively above these lines, the bearish pressure continues.
On May 16 I did “expect a min retrace of 23-38% (3350-2700). Probability of a deeper one – 50-62% (2200-1700) is rather high.” So far, the forecast stands.
NOTE: If ETH breaks below 1423.20, there is a chance of triple-digit price in the nearest future. The odds are still slim, but be aware.
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The call on May 16: