Hello guys! As you can see ETH is forming an ascending rectangle. We have to watch closely whether ethereum will break out of the resistance or the support line from the rectangle. This rectangle will only be valid if ETH will break above the 50 EMA. If Eth breaks below the rectangle, We could see a fall to around 460 dollars.
You can see that the RSI is back to 40 now, this means that Ethereum is neither overbought nor oversold. The area beween the 40-50 RSI can act as a resistance.
The MACD is showing a downtrend and you can see that the MACD line crossed the signal line, which was a sell signal. However, we are still above the zero line, if the MACD goes below the zero line, the bears will have the upper hand.
You can see that the 50 EMA acted as a support for just a small amount of time. The 50 EMA will act as a resistance now together with the 40-50 RSI zone. For now we have to wait and see wether this resistance is strong enough to stop ethereum from forming the rectangle.
You can see that ethereum is still inside the green area. This area is a place I call the bullish zone. Ethereum had to break above the downtrend channel to get inside this green area. And that is exactly what ethereum did. If ethereum manages to break out of the resistance line from the upwarding rectangle, its next challenge will be breaking out of the second downtrend channel. This one will be the hardest.
For now I am still bullish about ethereum. But as I said before, I keep my bear clothes close.
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I'm on bear watch right now and looking out too see if this H&S forms. If it breaks through the target would be a test of the bear channel we just escaped:
Trades999
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@ss44, Well spotted. I spotted it too thanks to this idea scrolled down and saw your chart, haha. Let's see or we can form that h & s. If we put an HH krypton's idea is valid. But I'm convinced we will see a big crypto sell-off within a week again.