Ethereum continues its sad painful bleed to the downside! But…if you were reading our charts we called for a short set up two days ago.
Which played out perfectly, we reached all 3 desired targets and as usual surpassed my final target. Is it time to go long? That has been the main question around the cryptosphere and quite frankly I do not think so just yet, although we are nearing the end of this bleed (bull move won’t be sustained). We may have room for one more play south.
Diving into the H1 chart we see ETH being rejected by this recent downtrend line, at first touch I entered short but we may break over it and head north towards the next trend-line. That is where we will have our next desired short entry with our stop placed near the pivot of 500.
Breaking past 500 and holding will invalidate our short entry. A couple things to look at is how the RSI is climbing but the price fell some this tells me the bears may still have control and also the STOCH is pretty topped off with a lot of downside to run to, the H4 chart shows more upside but is pivoting in no mans land with some downside still a concern, I would it rather see a pivot lower to ensure safe bull entry.
Remember to always practice good risk management.