$ETH closed firmly below 200 MA with a strong bearish candle. Next target – $1630-1700. Let’s explore the hypothesis from various angles.
The monthly and weekly time frames continue to be very bearish and it heavily impacts all smaller frames.
Today ETH continued as expected after completing the Falling 3 Methods combo yesterday.
From technical perspective – high volume, the price moved below 200 MA, RSI is on decline, MACD line crossed the signal line. Not even remotely bullish.
If ETH continues like this tomorrow, it could form a Three Black Crows which would add an insult to injury.
Odds: Strong Bearish
Short term target – $1630-1700, then a little bounce expected.
FORECAST & Events to Watch:
From the weekly report on weekend: “A downwards move is expected in the next few days. The move could break through the 200 MA line. Based on the minor waves, the most immediate target for the move would be $1700-1705.”
So far, everything as planned. If there are any changes, I’ll update.
– If ETH in July closes below $1707, the prolonged decline would be confirmed.
– A closure above $2908 would likely mean that a rally is underway.
– Anything in between, a continued horizontal correction (Alt B in light blue).
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The call on May 16: