2022-08-31 12:39:20
Dude's Market Check Let's check Ethereum's daily chart:
ETH continues show weakness on all timeframes. Price has been steadily rejecting from the cluster of moving averages on the daily as it forms lower highs.
Important to note that losing key moving averages (such as the 9-EMA) is often the first sign for more downside. Failing to get back above all the major moving averages is a continued signal of weakness.
If Eth moves below 1400, it suggests a move to 1250. Given the former downtrend, look for closures above key levels and use a level-by-level approach.
Upside: If price can close a daily back above 1700 (9 & 21-EMA), look for 1850 as the next important upside pivot area. The 9-EMA remains as a good metric to use in this environment to gauge strength.
Stoch RSI has been reset and pointing up, which can indicate some relief sign.
ETH is currently high correlated with BTC at 0.92 correlation coefficient (max 1)
ETH is a good representative for the altcoin market as a whole. Remember that weakness in ETH generally means weakness in altcoins. Another move down in BTC or ETH likely implies the same for altcoins.
9 EMA= Yellow Line
21 EMA= Green Line
50 EMA= Blue line
200 EMA= White line
200 SMA= Orange line
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