ETH/USD likely to decline further

22 Feb 2018

Since breaking the supporting trend line around $900, Ether looks to have completed a bear head and shoulders formation once it decended to $850. It is currently flirting with the 38.2% fibonacci retracement line at $810; it has decended through this line for the third time now on the 4H chart. It looks like the bulls may be trying to force it to close back above the 38.2% retracement but I believe this to be unlikely. The relative strength index is below 30, showing that Ether may be oversold. The MACD is currently below the zero line with the fast moving average seperating further from the slow average bearishly. If unable to close and remain above $810, I expect Eth to test the trend line from the previous small channel around $740. If it fails to rally upwards from $740 it is likely to test the 23.6% Fib retracement at $715. DISCLAIMER: this is what I see as likely to happen NOT a gaurantee of future action, exit/entry points or of you making successful trades. Please leave ideas, contradictions and criticisms in the comments; i'd be happy to read them.