ETH along with other major cryptocurrencies has taken a dip. The market overall is already bearish and so to say,  The market has formed lower lows and lower highs and has the potential to further form another bearish leg downwards, making another lower low. On the higher timeframes, we can confirm the dump on every cryptocurrency.

The ascending trendline is due to be broken out for sells. Once its broken and the candles have validated the confirmation of open and close below the trendline, we will have further confirmation of the down move.

The retracement level of 61.8% is in confluence with the resistance level.

EMA 50 is in the bearish region but just recently, broke downwards from the EMA 50. The curve is steep and the market has the potential to continue moving down.

Although the trend is bearish, we need to assess that market has to turn around after hitting the over bought reigon on the RSI, from where, the market can form a bearish divergence and the market can continue moving down. On the other hand, if the market drops below the 50 region, we can easily head down towards the over sold region.

Ethereum on the major resistance

Jan 08 2023