Hello World,
With the mother of all cryptos dropping ETH is taking an expected dive as well.
In my post yesterday I mentioned several bearish signs that indicated an incoming drop. I will be honest and say that I did not expect it to be as brutal and fast but the market dictates the rules.
Closer Look
This time I will start with the closer look first.
Yesterday I mentioned the possibility that the triangle pattern formation may not have been completed. Following this thesis, the price got rejected and went down. Even if it was completed, the bearish divergences played out, we back tested the upper boundary and went through to the lows.
Big Picture
The Daily timeframe shows mainly that if we dip below the previous low of 249.93 we will create a bullish diverge with lower price and higher RSI. The 250 support area is quite strong but we'll have to wait and see how far down ETH can go. Notice the rising volume. It is not the highest of course for the daily but the day is not over. Maybe the market is purging the weak hands.
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