ETH Downwards Channel
Etherium looks to be retesting the previous trend-line started at the beginning of November 2020. RSI looks like there is potential to hold but we really are looking to get a strong reaction upon retest in order to stay alive. We need to see a strong reversal upon hitting the 2000-2300 level and hold this trend to avoid the Bears. I would guess many have their Stop Loss set around the 1900 mark, so if we break that I expect a massive dump. My concern is we are inching our way closer to the weekend now and this is a crucial deciding factor for the coming weeks and months for where we are going to be.
BTC is the leader of all this and a lot has to happen for BTC to change momentum. BTC is currently navigating in a triangle and we have seen strong reactions upon a few retests of that 30k low. The more we test the weaker it gets which is something to keep in mind.
One other thing is over the last few weeks, we have seen a delayed reaction between BTC and ETH. BTC seems to dominate the fast reaction up or down and ETH seems to have more of a delayed reaction, almost like a slingshot. One potential outcome we can see in favor of the upside, if BTC can make a run to smash the 38-42k levels, we may see ETH slingshot to break the top of the channel. On the flip side, we can also see the opposite occur to continue its downward channel.
BTC is the leader of all this and a lot has to happen for BTC to change momentum. BTC is currently navigating in a triangle and we have seen strong reactions upon a few retests of that 30k low. The more we test the weaker it gets which is something to keep in mind.
One other thing is over the last few weeks, we have seen a delayed reaction between BTC and ETH. BTC seems to dominate the fast reaction up or down and ETH seems to have more of a delayed reaction, almost like a slingshot. One potential outcome we can see in favor of the upside, if BTC can make a run to smash the 38-42k levels, we may see ETH slingshot to break the top of the channel. On the flip side, we can also see the opposite occur to continue its downward channel.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.