ETH has marked up from its previous lows. Although on higher time frames, we still have bearish structure. On the H4, we currently see a bullish structure. Market is currently at the support level which stands solid at the 1520 price. Once market breaks this level, we have a setup towards the bearish side till the next support level. 

There are two trendlines in play on this setup. The ascending trendline is on the verge of the breakout sell with the validation of the breakout sell being due. On the other hand, we have a resistant trendline, which is formed for the bearish divergence. With this divergence, market is marking down towards the support level, and potentially has the strength to break towards the downside. 

As on BITCOIN, ETH has no representation of the trendline and the golden retracement area. Although, we can use the golden retracement area for the profit taking.

Narrowing down to the EMA 50, we can easily see that the EMA is in a bullish direction. After the breakout buy from the EMA 50, we have not yet retested the EMA 50. This retest of EMA 50 has the potential to profit taking.  If market breaks down this EMA 50 further below, then it has the potential to continue moving further down.

RSI is at a neautralized level. 50 level is the neautral area where market is currently hovering. With this, we also see a hidden bearish divergence with the RSI and prices. Being at the resistance, we will have a bearish momentum contiuation with confluence at the resistance level.

Bearish divergence on Ethereum

Jul 23 2022

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