ETHEREUM TECHNICAL ANALYSIS – KEY POINTS
We all experience a total correction in the Crypto Market. Ethereum is one of the altcoins that has completely finalized its 5 Motive Wave Structure. After these motive waves, we expect the corrections waves such as ABC or ABCDE corrections. Ethereum on the weekly chart indicates that the Corrective A & B waves have finished. We expect the correction wave C to be continued until the A Wave bottom is broken or at least a sagging below the Wave A. This interprets that the C Wave for Ethereum could touch $1,650 levels. Around this price level, Ethereum will have strong support which can finalize the ABC Correction. We can further discuss if Ethereum touches this level.
Above you can find out the weekly Heikin-Ashi chart and the analysis. As mentioned above, blue Elliott Waves have finished themselves and give way to ABC correction waves high-lighted in orange colour.
Ethereum is currently in the Ichimoku Clouds which is considered to be risky while trading (this is not trading advice) It is expected for Ethereum to proceed to the below level of the clouds to continue the correction.
ETHEREUM WEEKLY WAVE TREND INDICATOR
The weekly wave trend below indicates a bearish signal for Ethereum. This confirms the C corrective action to be continued. The bearish signal also continues in the daily and the monthly charts as well. This means strong selling pressure should continue unless we see a reversal signal. We will be updating this chart as soon as the further indications turn positive.
RELATIVE STRENGTH INDICATOR (RSI)
RSI 14 week moving average is below the 50% level which supports the above comments. Daily RSI indication is also below 50% levels. Below 50% indicates a bearish scenario where it needs to be above 50 for us to talk about the bullish scenarios.
The monthly RSI shows the bottom direction although it is above 70%. Can we say ETH is bullish since the RSI is above 50% now? Well as long as the direction of the RSI indicator show bottom, we can continue the bearish trend.