New ATH for Ethereum and now its time to go down

New ATH for Ethereum and now its time to go down

As expected, Ethereum has encountered resistance around the fib 4,618 and has started to decline. At the moment the price is still above the trendline which caused resistance earlier and hopefully can now provide support. Below that we also see two inefficiency blocks which can still be filled. These are points that I am keeping a close eye on. The first block we encounter has confluence with ema55 and the monthly open is also below it. A point of interest as I call them.

daily chart:

Here we see a new inefficiency block which also shows resistance from the previous highs. Even more confluence at that level, so logically this should be a strong support point. The price still manages to stay above the yellow trend line, but when a candle close below it will probably fill the two blocks quickly.

We see the bullish power on the ema's decreasing and also on the rsi we see a strong downward trend. The rsi has reached the 30 level and is still quite depressed by the ema.

4h chart:

At this timeframe we have had a candle close below the yellow trend line and the ema100 seems to be looking to cross the ema200 bearish. Therefore, I will not be surprised if Ethereum goes a little lower still. Also on the rsi you can see that Ethereum is trading below the trendline and if it crosses bullish there is still the second trendline ( - - line) that can provide resistance.

1h chart:

My expectation is a small rebound towards the fib 3,618 at $1711 to then continue downwards and the inefficiency blocks will be filled. These are in the range of $1370 - $1507. If Ethereum loses this level it is likely to move towards the horizontal support line at 1238. Below that is support at 818 dollars but we don't want to go there now because then we would end up in a bear market again.

When the fib 3.618 bullish is broken and flipped into support only then we look towards the moon again and the remaining fib levels are targets where profits can be taken.



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Technical analysis by Mr. Coingrats
Technical analysis by Mr. Coingrats

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