Welcome friends, foes, animals, aliens, my family of crypto lovers, to this update analysis on Ethereum! Let's get right to it! Looking at the four hour chart, you can see that ETH continues to break down from an enormous head and shoulders formation. As ETH has fallen, it has produced a series of bear flags on the way down. Most recently, ETH has broken below a key level of rising support (black trendline) and it's now heading down to the first level of support, at about 335. If we break down below there, the next major support level is at 277.33. If you look closely, the recent bear flag that was made has a corrective projection that extends down to the 277 level exactly. So, there is a formation on the chart, that shows a potential for the 277 level to be reached, in the near future. Additionally, you can see that ETH has printed several failed attempts to get back above the rising black support level. This failure is confirming the rising black support level as overhead resistance. That in itself, is a very bearish thing to see. So, there is a undeniably high level of consistent technical weakness here in ETH. Now that the black rising support level has been confirmed as resistance, the likelihood of trading above that level, in the near term, is relatively low. Therefore, look for a continuation to the downside. As long as we stay inside of this downtrend channel (in blue) I would expect ETH to just keep stair stepping it's way down through support levels. From here, those levels are 355, 277, and then 198.
A bearish crossover has been printed on the MACD and there is a large bullish divergence in the backdrop. However, the overwhelmingly bearish technical indicators trump the bullish divergence. With that said, I usually ignore divergences unless other technical indicators confirm them. Currently, nothing is confirming the MACD divergence. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Nice update Magic. I'm keeping an ill-timed but currently profitable short position open, as I too am expecting a drop to sub-$300 in the near term. I just wish ETH would stop fannying about and take a proper nose dive. It's getting reet on my titties with all the choppiness.
INFINITYWARS1
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Got to say i think your the only realist on trading view keep up the great work please !!
Poop did you mean first level of support is 355? not 335 right
MagicPoopCannon
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@lvg3g, Yes, sorry. 355. =D
AndreasRonald
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@MagicPoopCannon, why dont you post update about ethusd again? Like what u did with btc? Are u gone because you think the pattern doesnt work? If it reverse, it doest mine. Just wanna know your opinion about ethusd.