Today we have a rare opportunity to evaluate all long term candles and draw the perspectives for ETH. ETH closed today below $3915 and formed a bearish Engulfing on the monthly frame. Let’s evaluate this event in the context of other frames and from the perspectives of technical indicators and Elliott Waves.
This Yearly Review contains:
– daily, weekly, monthly and quarterly candle charts – analysis of candles and technical events;
– long term Elliott Wave forecast;
– short term EW chart and targets.
This yearly review continues the series of long term Forecasts for 2022 that @InvestingAngles provides for the followers and subscribers. Some of them can be viewed without subscription.
The quarterly candle experienced certain bearish pressure. Failure to close at a new high, a very long upper wick, a declining for 3 quarters volume, trading above BB for the whole quarter are bearish signals. The pressure is mounting and there is a good chance of a strong red candle in Q1 2022.
Monthly bearish Engulfing is extremely strong. It is supported by volume, RSI, MACD and a few other indicators. I already posted a little study comparing this event to the other similar ones happened with ETH in the past and led ETH to lose on average 65% of its value. All I want to emphasize that this one is stronger technically.
From the candles perspective, an Engulfing almost always leads, in the best case, to one period of lower prices.
The weekly candle will be printed in 2 days. At this point it has a good chance to engulf the previous green candle and close below 20 EMA for the first time since July.
Also note that the majority of indicators, including a fresh bearish PSAR, support a further move downwards.
Today candle canceled the bullish hopes after a Thrusting Line yesterday. Note that the candle was rejected right at 8 EMA and the selling volume recently has been higher than the buying one.
If we add the 3-day Falling 3 Methods completed two days ago into the picture, there is almost nothing bullish there.
Big Bear Alert on December 28:
This section discusses the long and short term charts.
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