Ethereum / Breaking News / Analytics
Ethereum (ETH) has made big moves to the upside over the weekend. You might think that had to do with real buying interest in the market but it was about scaring away the bears before what is to come. If we zoom in on the daily chart for ETH/USD, we see a bearish setup that is very rare to come by. If you are a bear, chances are you are already drooling over your screen looking at this chart. The price ended up testing the $194.55 level again. Now, you might be wondering what is so significant about that level. If we go back and look at the price action from November, 2018 we can see that $194.55 was the support that Ethereum (ETH) declined below when it broke market structure around the same time when Bitcoin (BTC) crashed below $6,000.
If this was the only reason that makes this such a wonderful bearish setup, it would still have sufficed as $194.55 is a very strong resistance level. However, if we look at the daily chart there is a confluence of other resistance zones which truly makes this bearish setup golden. There is a trend line resistance that goes back towards the yearly high. In addition to that, there are two support turned resistance trend lines extending back to August. On top of all of that, we have the 38.2% fib extension level serving as strong resistance and the cherry on top is the 50 day EMA. In other words, this setup couldn’t get any more bearish. As more people start looking at this chart, the market makers will become concerned because that means shorts will begin to stack up.