ETH Ethereum looking for bounce off 200MA and Bullish Trendline
Market sentiment is very mixed at the moment as bulls and bears try to pinpoint exactly where the market is going. In short, nobody has a single clue. There are inflation fears, monetary tightening fears, Omicron fears, supply fears, and even macro trend fears. A recent study suggested that 55% of Bitcoin investors expect BTC to be lower than 60k. While this is not an indicator by any means but simply put, historically an investor never wants to be on the side of the majority.
If we take a look at the chart, ETH has broken down from its local Bullish Trendline and is looking to retest the long-term Bullish Trendline and the 200MA. With these levels combined and in confluence, this suggests there will be strong support around the $3600 level. It is important to understand while this is a crucial level, if ETH loses this to the downside then this highly suggests a stronger move to the downside.
If we also take a look at the weekly RSI we can see that it currently is very close to a 3 year-long trend which suggests a strong bounce around this area as it has done 4 times prior.
At the moment all bullish trends are intact:
~Above Bullish Trendline
~Above 200MA
~Above Weekly RSI Trendline
The target could be a retest of broken local trendline around $5500-$6000. If Long-Term Bullish Trendline breaks to the downside, analysis is invalidated.
If we take a look at the chart, ETH has broken down from its local Bullish Trendline and is looking to retest the long-term Bullish Trendline and the 200MA. With these levels combined and in confluence, this suggests there will be strong support around the $3600 level. It is important to understand while this is a crucial level, if ETH loses this to the downside then this highly suggests a stronger move to the downside.
If we also take a look at the weekly RSI we can see that it currently is very close to a 3 year-long trend which suggests a strong bounce around this area as it has done 4 times prior.
At the moment all bullish trends are intact:
~Above Bullish Trendline
~Above 200MA
~Above Weekly RSI Trendline
The target could be a retest of broken local trendline around $5500-$6000. If Long-Term Bullish Trendline breaks to the downside, analysis is invalidated.