Ethereum, just like all the other crypto industry, has taken a hit, bottoming out towards the $1000 level and then retracing back upto the $1600. This price resides at the resistance level and has the tendency to push the market down. From this resistance, we are anticipating a lower low and lower high and also, continuing the downtrend towards the $1000 level. Once we reach this level, we will take profit and enjoy our day. The stops are kept above the resistance level at the price of $2000.

This resistance level is the make or break for the cryptocurrency. If broken, we will change our bias towards the bull side for the time being. If not, we will continue riding the downtrend on it.

We have the bearish trendline pattern which is called the bearish pennant. With this bearish pennant, we will have a breakout sell once the market falls below the trendline. Once fallen below and has validated the breakout sell, we will continue the trend.

The retracement area in confluence with the resistance is at 61.8%. This resistance in confluence is an added factor for our setup.

The EMA 50, as with all the other crypto currencies, is in a bearish trend and has the momentum to push the market further down. We do not anticipate the market retesting the EMA 50 in order to fullfill the market orders to drop down.

RSI is at 65. This means, market is in a bullish region. In order for us to confirm the bearish move, we will have to see the RSI drop below the 50 level in order to drop the market towards the over sold area.

ETH at a key resistance level

Aug 14 2022

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