Over three days $ETH tried to start a rally off the 200 MA. However, it looks like it’s run out of steam. If tomorrow ETH does not hit 2070-2100, the decline would resume. 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. PSAR flipped bearish 2 days ago. A monthly close below $1740 would confirm a strong multi-month bearish trend.
The previous week confirmed the trend. If this week closes below ~$1970-1950, there will be a high chance of extended decline.
Odds: Strong Bearish
The daily candles are stuck between 8 EMA and 200 MA lines. The volume is weakening and the price is at the upper boundary of the possible downward channel. The candles structure suggests that a large red candle could be made in the next few days.
If ETH breaks downwards through the 200 MA line in the next few days, it would open the target area $1000-1200 with a possibility of as low as ~$300.
Overall, ETH remains under significant bearish pressure on all frames. So far, no candle structure signals a bullish reversal.
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The call on May 16: