June 11 2022 - ETH weekly severely oversold

ETH and BTC all trending down this weekend after a very red Friday after CPI. As risk assets, if ongoing worsening inflation and bear market, crypto will continue to be hit hard.

Here is a log scale of ETH on the weekly.

Target 1: 1335 (black trend line)
Target 2:1191 (green 200w EMA)
Target 3: 875 (black trend line)

These are longer term targets. As of writing, RSI (5) is 9.39, last time it was this low was Dec 2018 and the bounce was quite telling. I do believe macro-economic conditions will force crypto lower over time. RSI suggests extremely oversold conditions and likely prevents a larger degree of drop unless crypto market completely crashes.

The short term strategy is watch for price to wash below target 1 down to target 2 before wicking back up for either a rebound or further consolidation. Therefore, if currently short would be cautious and all profits should be taken rapidly. If entering long, wait for fake breakdown as described.