#Ethereum closed May with very bearish candles. A move downwards is almost guaranteed.
This overview contains (open access):
– a discussion on the daily and weekly candles and technical events;
– a long and short term forecasts.
This post is part of the Monthly Analyses series that @InvestingAngles offers to the followers and subscribers. The series covers the US and global major indices; VIX, DXY, commodities, currencies, crypto, and some large cap stocks.
ETH formed a Falling 3 Methods on the monthly chart. This combo almost guarantees a continued move southbound, especially if reinforced by the MACD.
The price dropped below the 20 EMA; the trend is bearish.
At the end of June a quarterly candle will be formed. So far it looks extremely bearish. If it closes as shown on the right chart above, ETH could easily fall towards triple-digit prices.
The daily trend is bearish. Note the alignment of 50/100/200 DMA lines that seem to show no intent of forming bullish crosses.
The long term chart has been practically the same since November 2021.
Main hypothesis: ETH completed a Super Cycle wave (I) in November, waves A and B of (II) and is now working on wave C of (II).
Short Term + Classical Pattern
ETH is possibly completing wave 4 of wave C.
Wave 4 also can be viewed as a classical pattern – flag or pennant.
Possible target area: $900-390.
The monthly odds are strong bearish and the coin is expected to move lower in June. A closure with a red candle in June will complete, in turn, a very bearish candle formation on the quarterly frame which further increase the bearish odds long term.
Any green candle in June would have to be separately evaluated depending on the shape and size.
Short term perspectives are bearish. ETH could still bounce a bit higher, towards $2070-2200, and is expected to reverse down.
Targets based on Fibonacci levels and standard flag targets: $900-390.
Possible timing: end of June – July
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