ETHUSD Needs to break above this level otherwise dump possible
Ethereum (ETHUSD) has been trading within a long-term Channel Down since the November 10 2021 High. In recent weeks though, since the July 13 2022 Low, the price has made an aggressive run of +100%, pushed by the late bullish fundamentals. We clearly showed that bullish potential on our last ETH analysis a month ago:
That rise is starting to show some indicators that the rally may be over. It is not just the fact that it hit the 0.786 Fibonacci retracement level and started pulling back (same was done on 0.618 and 0.6 anyway) or the 1D MA200 (orange trend-line) being just above near the Channel's Lower Highs (top) trend-line, but more importantly the 1D RSI trading sideways sine July 18 and being rejected inside the overbought Resistance Zone on August 13. The other three times that this has happened in the last 12 months, lower values followed. Especially within the Channel Down, that marked the start of selling sequences to new Lower Lows.
Last time in particular (April 03 2022), ETH was also rejected on the 1D MA200, exactly on the Lower Highs trend-line of the Channel Down. As a result, breaking this shouldn't be enough to restore the long-term bullish trend. What may be enough on the other hand is a break above the 1D MA500 (yellow trend-line), which has been acting as a pivot through these past years, first supporting the price from January to March 2022 and now posing as the Resistance.
As a result, for long-term ETHUSD traders, it may be a good idea to take the huge profit if you opened the buy on time as we suggested and either go for the price that a new potential sell-off may lead to or buy when the 1D MA500 breaks.
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That rise is starting to show some indicators that the rally may be over. It is not just the fact that it hit the 0.786 Fibonacci retracement level and started pulling back (same was done on 0.618 and 0.6 anyway) or the 1D MA200 (orange trend-line) being just above near the Channel's Lower Highs (top) trend-line, but more importantly the 1D RSI trading sideways sine July 18 and being rejected inside the overbought Resistance Zone on August 13. The other three times that this has happened in the last 12 months, lower values followed. Especially within the Channel Down, that marked the start of selling sequences to new Lower Lows.
Last time in particular (April 03 2022), ETH was also rejected on the 1D MA200, exactly on the Lower Highs trend-line of the Channel Down. As a result, breaking this shouldn't be enough to restore the long-term bullish trend. What may be enough on the other hand is a break above the 1D MA500 (yellow trend-line), which has been acting as a pivot through these past years, first supporting the price from January to March 2022 and now posing as the Resistance.
As a result, for long-term ETHUSD traders, it may be a good idea to take the huge profit if you opened the buy on time as we suggested and either go for the price that a new potential sell-off may lead to or buy when the 1D MA500 breaks.
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** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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