Ethereum like every other crypto currency and the whole market has taken a dump. With this, the market has taken a bearish turn and is forming lower lows and lower highs, which validates the bearish structure. This being said, we will be looking to short the market from 2200 towards the support level.

The descending trendline is being retested by the prices and is being rejected. This rejection would add as a technical bearish confirmation on the price action. Although this rejection is below the resistance, we are still taking the trade based on the risk reward.

The retracement golden level aligns with the trendline but is below the resistance level. But at the golden level, we will take the trade as it has a confluence with the trendline.

Both the EMA's are bearish with a bearish death cross. This ema break needs to retest the EMA at the resistance level. This retest will reject the market and start moving towards the bearish side.

RSI is at 44 and CCI is at 70. Both of these levels are near the neautralized levels, which seems a good short given at the confluence area we have mentioned before. This confluence strenghtens up once the oscillators are in a neautralized levels.

Stacks on ETHEREUM

May 17 2022