Ethereum, is one of the solid crypto currency. Many upcoming blockchain projects are layered on the ETH network. ETH was a fork of Ethereum classic. Experts and analysts consider ETH the “digital oil”.

Longer-term prospects of ETH are far beyond abnormal returns over time span of few years.

That being said, we will look into ETH in a detailed technical point of view so we can cash in the swing moves, instead of holding it for longer term.

For this swing analysis, we will use Daily time frame only.

For longer-term investment analysis, we will share the chart in the upcoming week.

- Market structure: As BTC is in a bearish structure, so is ETH. ETH climbed to its all time high of $4200 and then slid back to the $1900 range. Right now, it’s printing Lower Highs and Lower Lows, within the range of two price levels: $1950 and $2850. If this break of the range to the downside is sustained, next potential target is $1400.

- Trendline: In this case, we have two cases of trendline. The major trendline, starting from 24th December 2020, has been breached and being retested, with a bearish engulfing candle. Secondly, we have a minor ascending trendline, which is on the verge of the break. This solidifies the strength of the bearish pressure.

- Retracement: ETH tapped the 50% retracement of the bearish leg. Confluence with the trendline retest and the bearish engulfing gives a high chance of downward continuation.

- EMA's: EMA 50 is above the current market, where as, EMA 200 is below the current market. This illustrates market being in a range within the two EMA’s. We are still away from the EMA death cross, which if happens, will be a catalyst for a further pull down.

- RSI/CCI: RSI and CCI both infer the bearish levels, RSI being at 50 and CCI at -65. There is no indication of any divergence in either of the oscillators, which would represent a potential bullish move.

Ethereum potential to tap $1400

Jul 10 2021