ETH at Risk of dropping, RSI Divergence !!!Hello everyone, as we all know the market action discounts everything :)
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The ETH token is at risk of dropping back to the 3000$ level in the next period of time as the chart showed 2 divergences between the market and the RSI and MACD.
when the market has turned Bullish after the Head and Shoulders pattern that appeared on the chart, people took comfort that the Token price didn't drop but today we see that multiple signs are giving Bearish Signals that could indicate that the value of Eth could drop soon.
Possible Scenarios for the market :
Scenario 1 :
The market is trading at 3608.67 right now under a good Bullish movement that broke the first resistance line located at 3539.55. This move will probably push the ETH price to the Main Resistance zone where ETH might have a big problem breaking out from.
If the Bulls were to gather force and breakout that zone then we will see a push that could bring the ETH back to the $4000 level.
Scenario 2 :
A big divergence was found between the Market and different indicators that show a good possibility for a reversal soon and it will start probably near the first resistance level located at 3539.55, If the reversal turns to be True then a Bearish trend will lead the ETH price down and the first stop will be the support level located at 3349.57 and then the support at 3159.59 where we might see a big battle between the Bulls and Bears over control of the market.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish Sign)
2) The RSI is at 58.74 showing Great strength in the market but a negative divergence was found which indicates a reversal in the current trend.
3) The MACD is above the 0 line indicating a Bullish state in the market with a positive crossover between the MACD line and the Signal line, A divergence has been found between the indicator and the market
Daily Support & Resistance points :
support Resistance
1) 3349.57 1) 3539.55
2) 3284.42 2) 3664.38
3) 3159.59 3) 3729.53
Weekly Support & Resistance points :
support Resistance
1) 3341.66 1) 3737.47
2) 3109.09 2) 3900.71
3) 2945.85 3) 4133.28
Fundamental point of view :
Ethereum is certainly making strides towards the Ethereum 2.0 completion. Just a few days ago, the project announced the arrival of its Ethereum Altair upgrade. To specify, the upgrade will be taking place sometime this month.
The purpose of Ethereum 2.0’s launch is to fully deploy a Proof-of-Stake consensus onto its platform. This model should eliminate the platform’s long-striving issues of high gas fees, congestion, and limited scalability.
"It seems like Ethereum is losing Steam. As a result, companies are looking into platforms like Cardano , which is used to build dApps, and Solana, which has seen a nearly 4,800% growth since September 2020." According to FXempire
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
