Ethereum is at prime support zone forming a bearish trend and has a possibility to revers for a corrective move towards the $3000. The lower lows and lower highs still confirm the bearish trend but being at a major support zone, which we have identified since long, we will be taking a rish here for a long position at the price point of $2700. Rest assured, if H4 candles start to break this support, we will be looking to take a loss and get out of the market.

There is a bullish flag pattern forming. But for that to be a confirmation, we need to wait for the breakout and then, candle validations. Till now, the breakout buys is still above the current price action and we will wait for further confirmation towards the breakout buys. Where as the support trendline, its still holding and there is a chance of rejecting. 

The golden retracement area of 75-78.6% is in confluence with the support where the market currently resides. This support level is strong enough to give us a corrective move. 

Both the EMA's are bearish with a bearish death cross. This means that the market is still bearish and has a further momentum downwards. That being said, we will be looking to take the bullish corrective move from the support level till the retest of the market. 

RSI and CCI, both the oscillators are in an over sold region. This region is at 35 and -130 respectively and has a bullish divergence formed. This divergence has a chance to continue moving up till the resistance level which we have marked. For that matter, we have three technical factors aligned. 

If market breaks this support area, we will change our bias towards the shorts as the bullish momentum would have died down once the market has broken out from the support.

Ethereum tapping Golden retracement.

May 03 2022

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