As the cryptocurrency as a whole started to slide towards the downside, ETH has followed suit and is continuing to drop down. The latest, ETH has broken the support level which has now turned into a resistance. At this resistance, we will be taking a short position given the price action shows us a bearish price action eg. bearish engulfing, pinbar rejections.

The descending trendline might confluence with the resistance level and assist in the rejection of the prices once the trendline is tapped.

The retracement level of 61.8% is in confluence with the resistance level, from where, we are looking at the shorts.

EMA 50 is above the current price and is flat at the moment. Right now, the EMA 50 is blanketing and retesting the EMA at the resistance level, forming a confluence.

RSI is at 59. It needs to dwell into the over bought region in confluence with the technical charts to form a bearish divergence and continue moving down.

Inverse head and shoulders formed

May 28 2023