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Tuesday, November 29, 2022

ETH is not a security, the ususal strength, and bearish outlook

ETH is not a security, the ususal strength, and bearish outlook

Ethereum / U.S. dollar BITSTAMP:ETHUSD

While Bitcoin set a new low in November 2022, Ethereum failed to do so. Instead, the selling pressure stopped two times around 1070$, constituting a significant support level . Subsequently, the price broke above the sloping resistance (now the sloping support) and rose to 1234$ before reversing lower.

Over the past few months, this strength of Ethereum (compared to Bitcoin ) has been shown in numerous instances, and it marks nothing out of the ordinary. Therefore, we continue to be bearish on Ethereum and maintain our price targets at 1000$ and 900$. As to an attractive price entry, we also maintain a notion (one reiterated since the summer) that the current price level is risky. In our opinion, the attractive price for shorting stays between 1500$ and 1600$.

*As a matter of fact, yesterday, Belgium’s financial regulator declared that Ethereum and other cryptocurrencies without an issuer are not securities. That should provide more clarity for future cryptocurrency projects in the European country.

Illustration 1.01

snapshot
Illustration 1. 01 displays the daily chart of ETHUSD . The yellow arrow indicates the bullish breakout above the sloping resistance (now sloping support).

Technical analysis - daily time frame
RSI is turning bullish . MACD made a bullish crossover below 0 points. and Stochastic is neutral. DM+ and DM- are bearish . Overall, the daily time frame is bearish .

Illustration 1.02
snapshot
Illustration 1.02 shows the daily chart of ETHUSD and simple support/resistance levels.

Technical analysis - weekly time frame
RSI is neutral. MACD points to the upside but stays in the bearish area. Stochastic , DM+, and DM- are all bearish . Overall, the weekly time frame is bearish .

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.


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