Ethereum has broken down like we assumed would happen but what has changed is the overall bullish set up for the month. In order to sustain our bullish call for the month, we NEEDED to sustain the important swing low of 454-460 but we fell out and down with decent volume which leads me to believe we have more downside coming if things don’t change rapidly. Our short targets were hit and surpassed as my target was swing low.
https://abacusjournal.com/wp-content/uploads/IMG_20180710_084440_562.jpg 636 1280 Andrew Parish /wp-content/uploads/logo-header.png Andrew Parish2018-07-10 17:02:592018-07-10 18:12:13Ethereum Breaks Down; Technicals Trending Even Lower!
Diving into the H1 chart we notice we don’t see any signs of a reversal from RSI or STOCH. We will get some relief soon but I expect it to be sold off as support is now resistance. Usually, when we see an extension of the first move being 1.6 or greater we can expect another leg down to follow up. These factors all lead me to believe we will be trending lower after some consolidation.
I will look to add to my short position at the bounce and I’ll look to close all at the touch of swing low. Other targets are listed just in case we don’t make it down that far. Remember to always practice good risk management and remember not every trade is the trade.