Retracement made. $ETH holding at S1. #Crypto becomes bearish

17 במאי 2019

Newsletter 17/05

Market Analysis

Key levels
Short term
Supports—> S1: 235 & S2: 215
Resistances—> R1: 280 & R2: 300

Medium/Long term
Supports—> S3: 203 & S4: 180
Resistances—> R3: 310 & R4: 330

Potential scenario
ETH/USD has been constantly increasing since it bottomed in mid-December and yesterday reached $280, unseen levels since September 2018. After this bull run that has increased the Ethereum price by 57%, it made an important retracement 10 hours ago stopping at S1. It was possible to see MACD bearish divergences before the fall. Now, if S1 is broken with high volume, we can see further falls to S3.

TA comment
Before the recent pull-back the indicator MACD was showing a bearish divergence, as can be seen in the chart. Moreover, it sent a Sell signal while the bearish divergence was taking place. Currently, the MACD line (fast) is below the signal line (slow), meaning that, for now, no long positions should be opened according to this indicator.

Pattern
The recent retracement has performed very long wicks, which basically represent a high volume of buy limit orders at a lower level stopping the way down of the price. This pull-back has left in its way several Long Line Bearish patterns, which is a bearish continuation pattern represented by one candle.


--CRYPTOHOPPER--