Ethereum: Bearish Signals and How to Trade
The price broke SMA20 and could not move above it. We got a strong bearish candle, which tells us that the sellers are in control of the price.
If we talk about TA, of course, it is a solid signal supporting the further downward movement. If we combine this bearish signal with a trend reversal signal based on a bearish divergence, we will have a market with a strong wish to test SMA50 and SMA100 at least.
RSI is bearish, and the line is far from the oversold zone. It means that we have the space for the downward movement. MACD is bearish, and it is supporting the sellers. DMI is bullish, but ADX line is moving down. It tells us that the buyers are not so strong and they don't have the power to push the price upward.
The 1st support zone is formed by 360USD and SMA50. The price action at this level will be able to give us a reversal and a new buying opportunity.
The 2nd support zone is formed by 300USD and SMA100. From my point of view, if the price reaches this zone, we will get an amazing buy signal.
As for now, the coin doesn't look so interesting for trading as it is not a good idea to short the crypto, and for buying, we have no reason.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
If we talk about TA, of course, it is a solid signal supporting the further downward movement. If we combine this bearish signal with a trend reversal signal based on a bearish divergence, we will have a market with a strong wish to test SMA50 and SMA100 at least.
RSI is bearish, and the line is far from the oversold zone. It means that we have the space for the downward movement. MACD is bearish, and it is supporting the sellers. DMI is bullish, but ADX line is moving down. It tells us that the buyers are not so strong and they don't have the power to push the price upward.
The 1st support zone is formed by 360USD and SMA50. The price action at this level will be able to give us a reversal and a new buying opportunity.
The 2nd support zone is formed by 300USD and SMA100. From my point of view, if the price reaches this zone, we will get an amazing buy signal.
As for now, the coin doesn't look so interesting for trading as it is not a good idea to short the crypto, and for buying, we have no reason.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Penafian
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