ETH Response to Support Levels Should Provide More Evidence for KRAKEN: ETHUSD By Burning-Theta – Technische Analyze – 2022-08-27 17:29:47

Fundamental chart: ETH is approaching key support levels based on Fibonacci and measured movement

Last ETH rally since June 2022

ETH hit its YTD low on June 18, 2022, a day or two after many stock indexes. Since then, it has increased significantly, although not in a straight line. The rally has taken ETH up about 1,149 pips so far, which is a 130% profit. That rally has now reversed at least in the short-term with the secondary swing high on August 14, 2022, at $2,029.90.

It is still uncertain whether the recent rally is a trend reversal or just a bearish rally. as such Federal Reserve President Jerome Powell spoke yesterday at an economic summit in Jackson Hall, Wyoming (USA), reported the need for continued restriction monetary policy Tighten financial conditions to last inflation Roll back to the 2% target. So the macroeconomic headwinds suggest that cryptocurrencies, stocks and other risk assets may struggle at best or have a bigger downside at worst. While it does not call for a bottom in ETH or any other risky assetThis article notes that the markets Can down even as the macroeconomic news remains quite bleak.

After outlining the basic arguments about whether ETH has reversed its downtrend, this article will not spend any additional time predicting the fundamental or long-term trend of ETH. Instead, fundamental price actions and support levels that could help assess the nature of ETH’s trend in the coming weeks will be discussed. If the rally from the June 2022 low constitutes a major trend reversal (return to an uptrend), support levels identified on test will likely continue. Sometimes a test may have a breakout that fails and quickly recovers above a support level, also called a whipsaw or phantom break.

ETH critical support levels for the current decline

The basic chart above shows key support levels with Fibonacci ratios. Fibonacci retracements cover the range from June 18, 2022, from the low to the August 14, 2022, high. These support levels approached due to the massive drop in ETH on August 26, 2022. Interestingly, some of these key levels are also aligned with the major price support at the lower levels or consolidation. Two examples are described in the following list:

  • The . 618 . bounce (yellow line) in the 2-month rally coinciding with price support (dark blue line) at swing tops in late June and early July 2022.
  • The 50 correction (green line) aligns with the lower end of the consolidation in mid-July 2022 as well as the low of August 26, 2022 at 1488.00.

The concept of measured movement may also be relevant to the current multi-day decline. For the measured movement, the corrective wave A is projected from the beginning of the projected wave C. Where A equals C where the measured movement area begins. The measured movement area ends where wave C of the retracement is equal to wave A multiplied by the Fibonacci ratio of 1.272. These two support levels are located at $1,217.53 (lighter blue line) and $1,080.02 (blue line), as shown below. 618 . bounce line on the basic diagram above. Note that this article does not assume that a measured movement is underway – this requires predicting that the current decline will constitute a corrective pullback within an uptrend. As mentioned, no judgment is being made as to whether the current decline resumes a downtrend or corrects a newly started uptrend.

In short, the measured move level provides a support area that must be looked at to determine the nature of the recent decline. If the price reverses in the area of ​​the measured movement, this increases the odds of a continuation of the rally. If the measured movement area fails, this increases the odds of a retest and breakout of the 879-880 flames in June. This is why the $1,080 to $1,217 space is important to watch in the coming days to weeks.

ETH shift in the shorter term

ETH’s short-term momentum has turned negative over the past two weeks. Short-term exponential moving averages provide a good starting point for assessing short-term momentum. In this context, a shorter time means several days to several weeks. The price again broke below, and settled below, for 8 days EMA for 10 days. In the past week, the price of ETH at least twice attempted to recover the eight days EMA But he failed at the end of the day. 21 days EMA It has now broken also. Both are sloped down and 8 EMA Is over 21 years old EMA Continuous affirms bearish short-term momentum.

Supplementary Graph A: EMAs show 8-day and 21-day short-term reconciliation Paid


Ethereum RSI on me daily chart Confirmation of a short-term change in momentum. Notice how RSI It peaked near the end of the last bearish rally around 71.42 on the daily time frame. This level is overbought for one daily chart Especially considering the price action to date has been pretty much bearish and choppy.

Supplementary Chart B: ETH RSI It appears in the short term reconciliation Paid


NB sharp Downtrend i RSI on the above chart as evidence of RSI Still much less than that EMA on me daily chart And the RSI Stay within a sharp and clear downtrend.

Conclusions from ETH . technicians

In short, ETH technical information does not provide an answer as to whether the medium or long-term trends have reversed this year’s bear market. However, they do help to see that the short path of least resistance is slightly less. It gave us the price levels and areas to watch to determine the next move for ETH. These levels can also help traders analyze whether the multi-week uptrend from the June 2022 lows will continue or whether it will be considered a strong bearish impulse within a marked downtrend.

Author Comment: Thank you for reviewing this post and looking at its plots and analysis. The author welcomes comments, discussion and discussion (respectfully provided) in the comments section. Split graphs are especially useful for supporting any opposing or alternative viewpoints. This article is intended to provide an unbiased technical view of the discussed securities or tradable risk assets.

Disclaimer: This post contains comments posted for educational and informational purposes only. The content of this publication (and any content accessible via links in this publication) and its opinions do not constitute financial advice or an investment recommendation, and do not take into account the readers’ personal financial circumstances, investment or trading objectives, time frame and risk tolerance. Readers should conduct their own due diligence and consult a qualified financial advisor or other investment/financial expert before entering into any trade, investment or other transaction.




Currency base: ETHUSD


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