ETH/USDT: Further downside risk towards 1240 and 1070

---- Mid-term Analysis for the next coming 4 weeks to 3 months - Based on Daily Chart -------

ETH/USDT: Further downside risk towards 1240 and 1070

Context
- The Global Crypto market leads by BTC and ETH reversed a new bullish trend this summer - however the market is now showing sign of weakness after having penetrated 1465 last week
- The global macro remains bearish (Crypto + Stocks market) leads by hawkish ton from central bank and a further inflation risk context
- The Merge was a success but will not allow the network to perform till the sharding update is completed

Previous analysis 16/09/2022 : https://www.tradingview.com/chart/ETHUSDT/urRqiIBC-ETH-USDT-Turn-neutral-1465-and-1800-Downside-risk-active/



Market configuration

- Graphical Elements :
Graphical support = 1240 /880
Graphical Resistance = 1670/ 2170 & 1800

- Mathematical Indicators:
EMA ( Exp Moving averages) are resistance = bearish
RSI indicator (below) is now below 50% with new bearish signal = Bearish (No divergence)

- Elliot & Harmonic Wave (Fibonacci):
A last drop to draw the wave (v) (c) (4) is now completed - the market is now bouncing off in recovery
Fibonacci resistance of the wave = 1670
Fibonacci bullish wave target at 2170 before 2690
Fibonacci bearish wave target at 1240 and 1070

Conclusion

Combining the fondamental situation (Global macro fighting against inflation with hawkish ton from FED) + Technical Element , it is now hard to find bullish element to call for a further recovery,the level at 1240 is quiet strong in term of fibonacci , but only if we are in recovery context to realize the same move as this summer which is not aligned with fondamental for now...

Wednesday FED HIKE RATE DECISION (2,75% => 3,25% expected) = bearish Risk asset class

Turn Bearish below 1670 and 1500 in order to follow the downside wave to 1240 and 1070 before the Strategic Support at 880