ETH daily short retracement likely
Hi All,
Statistic-wise ETH has a ~66% chance of dropping in price from these levels.
My arguments:
- We are retesting some significant levels both on the daily and weekly timeframes - from the bottom side which tends to act at least as temporary resistance for further bullish price increases
- Bearish divergences have been building both on the RSI and Stochastic RSI on a daily timeframe.
My price targets:
- 1500: that is roughly a natural lower support of the recent rising channel - it may increase over time if price keeps teetering at the upper line of the channel for a few more days (light-blue line) I would dare a short position here with a tracing stop-loss.
- 1400: it was premature from me to draw a fib retracement but I was playing with the thought of the current red zone acting as resistance. A healthy retracement of the recent price run would be between 1400 and 1500 USD. I would dare a short position here with a tracing stop-loss.
- 1300-1400: there is a long-term support trend line (yellow line) that has been acting as a strong support for several years. I would NOT try a short to these levels but if price come to this zone I definitely would open some careful long positions.
- 900-1000: This level is both a proven level of support and also a psychological one. I would definitely start some longs around here if price were ever to fall here.
- 500: My "last defence" this is the lowest price that has ever acted as resistance that has not yet been retested over the long term (ie. after months). I would scoop up ETH here like crazy, provided the basic narrative behind this crypto does not change.
Statistic-wise ETH has a ~66% chance of dropping in price from these levels.
My arguments:
- We are retesting some significant levels both on the daily and weekly timeframes - from the bottom side which tends to act at least as temporary resistance for further bullish price increases
- Bearish divergences have been building both on the RSI and Stochastic RSI on a daily timeframe.
My price targets:
- 1500: that is roughly a natural lower support of the recent rising channel - it may increase over time if price keeps teetering at the upper line of the channel for a few more days (light-blue line) I would dare a short position here with a tracing stop-loss.
- 1400: it was premature from me to draw a fib retracement but I was playing with the thought of the current red zone acting as resistance. A healthy retracement of the recent price run would be between 1400 and 1500 USD. I would dare a short position here with a tracing stop-loss.
- 1300-1400: there is a long-term support trend line (yellow line) that has been acting as a strong support for several years. I would NOT try a short to these levels but if price come to this zone I definitely would open some careful long positions.
- 900-1000: This level is both a proven level of support and also a psychological one. I would definitely start some longs around here if price were ever to fall here.
- 500: My "last defence" this is the lowest price that has ever acted as resistance that has not yet been retested over the long term (ie. after months). I would scoop up ETH here like crazy, provided the basic narrative behind this crypto does not change.