This entry is part 24 of 31 in the series Technical Analysis by Workin

Ethereum broke down to new lows for 2018. It’s currently finding support between $226-220. This bearish momentum may not be over, but it does appear to be approaching bottom. There’s a strong demand zone between $196-$178. This seems like a logical entry point.

 

The daily MACD, RSI and Stoch RSI are all showing bullish divergence.

 

The 1 week RSI is nearing it’s all time low. The 1 week Stoch RSI has been oversold for nearly 2 months.

 

Zooming in on the 1 week RSI, we can see a bullish looking falling wedge. If the RSI breaks above this wedge, it could indicate a shift in momentum towards the bulls.

 

Shorts are stacked to near all time highs. This is a real sign the bottom is near.

 

Long positions remain fairly high as well, but have fallen off over the last couple days. If this trend continues, and shorts continue to stack, I think we could see price bottom out and reverse course in the next week or two.

 

In today’s video analysis, I discuss my Elliot wave count, where my buy orders are stacked, price movement over the next week and MUCH more information not found above. I hope you find it helpful.

Video Analysis:

BIAS:

Short Term: Slightly Bearish

Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!

Workin

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Responses

    1. Workin2005 Post author

      Thanks for stopping by @meganmikhail21. I agree…ETH needs to change quite a few things if they expect to compete longterm. That said, the founder, Vitalik, has acknowledged this…which I greatly respect. It’s his honesty, and willingness to change, that makes me bullish on ETH longterm. Of course, time will tell.
      https://www.coinspeaker.com/2018/09/04/is-ethereum-actually-heading-for-a-collapse-co-founder-vitalik-buterin-opens-up-his-views/

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        1. Workin2005 Post author

          If it gets that low, there’s a tiny order block at $125 that MIGHT provide some temporary support, but I doubt it holds. The next major support below $150 is down around $90. In fact, if $150 breaks, I’ll likely short it all the way down.

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