Ethereum's (ETH) price will retrace - Short ($140)
Updated
Ethereum's (ETH) price tested the Weekly Candle Close in range of ($189 and $196). The Colored zone is playing the role of a strong resistance level that will stop the price growth and forced to retrace in a downward direction to find support to hold on.
Fundamentally last two weeks Ethereum's (ETH) price dropped more than 25% for a short time. BTC had a drop of more than 17%, those kinds of numbers are speaking of a new bearish trend coming. As I said in the last Ethereum's (ETH) prediction a bearish trend is coming. Historically diversification towards smaller assets indicates a future drop. The last few days altcoins had a growth of 10% shortly. To me, this is can be read as a signal for future drop and manipulation for the masses. ETH will retrace one way or another probably making new lows. Negotiations between the USA and China are taking place in those days. If a consensus isn't reached the stock market will drop 6 to 7%. The snowball effect will affect the crypto market as well. This will give more bearish momentum to the situation we are in right now.
In my opinion, there will be no deal between the USA and China at that current moment.
Technically Ethereum finished Five Impulsive Waves, calculated by Elliot Waves Theory on 29 of August. Price retraced more than 35% forming a 2nd wave up to $223. That means by Elliot Waves Theory that most likely we are in 3rd wave. An aggressive drop should take place. Last few days we had a retracment to $194. The retracement formed an ABC corrective movement which is a bearish sign. Ethereum's (ETH) price tested the Weekly Candle Close in range of ($189 and $196). The Colored zone is playing the role of a strong resistance level that will stop the price growth and forced to retrace in a downward direction to find support to hold on. On the other hand, on a 4H time frame, an Over Sold - Relative Strength Index (RSI) can be spotted. It means that the drastic movement has to retrace cause Over Sold condition is a bearish indicator. Ethereum's price is testing a 200-candle exponential moving average (EMA) on a 6H time frame. If the price can't reach above $198 at that moment a retracement is inevitable.
Conclusion
Ethereum's (ETH) price will retrace to find a solid support level. Strong support zones are price levels at $140, $137 and $125.
Good luck!
"If everyone is thinking alike, then somebody isn't thinking."
Fundamentally last two weeks Ethereum's (ETH) price dropped more than 25% for a short time. BTC had a drop of more than 17%, those kinds of numbers are speaking of a new bearish trend coming. As I said in the last Ethereum's (ETH) prediction a bearish trend is coming. Historically diversification towards smaller assets indicates a future drop. The last few days altcoins had a growth of 10% shortly. To me, this is can be read as a signal for future drop and manipulation for the masses. ETH will retrace one way or another probably making new lows. Negotiations between the USA and China are taking place in those days. If a consensus isn't reached the stock market will drop 6 to 7%. The snowball effect will affect the crypto market as well. This will give more bearish momentum to the situation we are in right now.
In my opinion, there will be no deal between the USA and China at that current moment.
Technically Ethereum finished Five Impulsive Waves, calculated by Elliot Waves Theory on 29 of August. Price retraced more than 35% forming a 2nd wave up to $223. That means by Elliot Waves Theory that most likely we are in 3rd wave. An aggressive drop should take place. Last few days we had a retracment to $194. The retracement formed an ABC corrective movement which is a bearish sign. Ethereum's (ETH) price tested the Weekly Candle Close in range of ($189 and $196). The Colored zone is playing the role of a strong resistance level that will stop the price growth and forced to retrace in a downward direction to find support to hold on. On the other hand, on a 4H time frame, an Over Sold - Relative Strength Index (RSI) can be spotted. It means that the drastic movement has to retrace cause Over Sold condition is a bearish indicator. Ethereum's price is testing a 200-candle exponential moving average (EMA) on a 6H time frame. If the price can't reach above $198 at that moment a retracement is inevitable.
Conclusion
Ethereum's (ETH) price will retrace to find a solid support level. Strong support zones are price levels at $140, $137 and $125.
Good luck!
"If everyone is thinking alike, then somebody isn't thinking."
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