Ethereum / TetherUSShort
ETH - Creating Market Structure
This coming week we are looking for major volatility in the stock market that could bleed over into crypto. We are actively looking for the potential direction of what we could expect for next week and strictly based on TA it looks like the bears will be trying to regain control.
The first takeaway would be our trendlines of support and resistance (thick black lines). This gives us the current undervalued and overvalued levels. I have also drawn our current fib trend which seems to have incredible confluence with key price levels. We notice that our short term trend has our 1.618 marked where our last bottom was giving us more confidence that ETH could have hit a short term top. Of course we still have a lot of support (candle bodies) built at the 0.236 level, but the main level I would be watching for is our 0.618 around $1,550. If we go below there I would be watching our bottom trendline of support.
We can also see on the daily timeframe that we did create a doji reversal candle and have so far started to see that reversal in price. The other thing to take note of is the bearish divergence we see in relation to price and the RSI. ETH has continued to make relative higher highs while at the same time creating lower highs on our RSI.
This theory would be negated if ETH is able to close a daily candle body above our top trendline.
The first takeaway would be our trendlines of support and resistance (thick black lines). This gives us the current undervalued and overvalued levels. I have also drawn our current fib trend which seems to have incredible confluence with key price levels. We notice that our short term trend has our 1.618 marked where our last bottom was giving us more confidence that ETH could have hit a short term top. Of course we still have a lot of support (candle bodies) built at the 0.236 level, but the main level I would be watching for is our 0.618 around $1,550. If we go below there I would be watching our bottom trendline of support.
We can also see on the daily timeframe that we did create a doji reversal candle and have so far started to see that reversal in price. The other thing to take note of is the bearish divergence we see in relation to price and the RSI. ETH has continued to make relative higher highs while at the same time creating lower highs on our RSI.
This theory would be negated if ETH is able to close a daily candle body above our top trendline.
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