Greetings! In this article, I will go over my technical analysis I did today and explain what indicators were notable and future potential scenarios of the Ethereum price action.
What's next after today's dump?
Today, Ethereum (And the whole crypto market) dumped towards lower levels. This however wasn't very surprising (as I have been talking about the potential of a small dump for the past couple of days). I will look at the technical indicators of the 4hr, 24hr, and weekly timeframes to get a good perspective on the effects of the dump.
4-hour time frame:
In the 4-hour time frame, the MACD is currently feeling the effects of the bearish cross that was confirmed yesterday (With a small chance of forming a bullish cross anytime soon). Additionally, the RSI went below oversold territories, which means that within the next day or so, there will be some kind of reaction towards the upside. However, other than these two indicators, the 4hr time frame didn't reveal that much in comparison to the 24hr and weekly time frames.
24-hour time frame:
In the 24-hour time frame, the MACD, like the 4-hour time frame, is feeling similar effects from the confirmation of a bearish cross. The RSI was also reset to neutral territories (From near-overbought territories) and back into the RSI resistance shown on the weekly timeframe. Furthermore, the Ethereum price is now well below all the EMA resistance levels (20, 50, and 200). This means that for Ethereum to be able to break through the EMA resistance levels, it would require significant bullish momentum to do so (Which is very unlikely at the current moment).
Weekly time frame:
In the weekly time frame, the RSI was pushed back into RSI resistance and the bullish cross on the MACD is now confirmed to be invalidated. Furthermore, Ethereum has officially broken below the 200 EMA support level as well, which means that now (Without bullish momentum from external catalysts), Ethereum is likely to seek lower targets within the near future (Next support level is 1.45k).
Conclusion
In conclusion, Ethereum is likely to be searching for lower price targets in the future due to the weekly MACD and RSI being relatively bearish and the price also breaking under the weekly 200 EMA support. Furthermore, Ethereum is still within a channel that would require a strong bullish catalyst to break out of. Due to this, it is likely that Ethereum along with many altcoins, to bleed out slowly until further notice.
