$ETH closed today with a strong bearish continuation candle. It continues to be under bearish pressure on monthly/weekly/daily time frames. Let’s explore the hypothesis from the different angles.
The High-Wave Doji of May is waiting for confirmation of trend. The RSI and MACD were at All Time High, but are definitely moving down now. A monthly close below $1740 would confirm a strong multi-month bearish trend.
The previous week Dark Cloud Cover is confirmed this week and, on top of that, the price closed below the 20 EMA line, sending a strong bearish message for the next week. Multiple indicators also support the lower lows next week. There is a chance of Three Black Crows on the weekly frame.
Odds: Strong Bearish
Today ETH closed with a bearish Maribozu candle. This and some indicators support the idea that ETH is in the middle of wave 3 down. However, it stopped right on the 200 MA line. If the coin decisively breaks through, the much lower prices could be in the cards. Odds: Bearish
The Elliott Waves suggest that the next target would be in the $1200-1300 area (chart above). If ETH declines to this area, the next move is likely be horizontal.
There is also a possibility that ETH has completed a triangle with the counts as on the chart below. If it did, the targets are marked by the red lines. This hypothesis will likely be confirmed or rejected in the next few days.
Overall, ETH remains under significant bearish pressure on all frames. So far, no candle indicated a possible bullish reversal.
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The call on May 16: