Three months red? It never happens. It only happened in 2022 and that's because we were dealing with a bear-market.
Then it happened again in 2018 but that is because we were dealing with a bear-market. The ensuing years, never, never three months red. It is like the launch of the spot ETFs changed the market dynamics, it changed our map.
Ok, the map changed so what? We adapt to market conditions, that's what we do, it is not like we cannot adapt pretty easily.
Ethereum closed three months red already, something that only happened twice on this chart, in 2022 and 2018. Apart from these bear-market years, Ethereum would never close three consecutive months red let alone four or five.
Relief?
➢ Since we have three months that closed red the market calls for a relief rally? ➢ Since we have three months red the market must turn? ➢ Since we have three months red the fourth must be bullish?
Anything can happen but we read the chart. Three months red is a bearish signal, but relief is always necessary.
Let's look at some scenarios.
Say this month wicks down strong and closes green; that's relief. Say this month closes red and next month (October) and the month after (November) close green; that would be a relief rally.
We can impose our beliefs on the market, saying "this must happen" or "that must happen for this or that reason," or we can read the chart, see what is actually happening and determine based on this data what is likely to happen next.
The times that Ethereum closed three months red it continued red for another six additional months. Market conditions are different now, but we can only be guided by the data on the chart.
The weekly MACD and RSI are on the bearish zone. The monthly MACD and RSI are both trending down strong.
➖ ETHUSDT Monthly RSI:
➖ ETHUSDT Monthly MACD: (Bearish cross in the making.)
This is the monthly chart, one candle is 720 stronger than the hourly chart.
Maybe it will grow, but I need confirmation by seeing prices going up.
As long as it is red, it is going down.
Thanks a lot for your support.
Namaste.
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We are likely to experience the biggest crash in the history of Ethereum.
This project is likely to suffer the most compared to the other giants.
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