Ethereum has risen over 3,000% this year alone yet has failed to break it's June high of ~$400. Unlike BTC and LTC and other high-market cap coins who have printed higher highs throughout summer, ETH has only just recovered from the first pullback of its June high.
Failure to break the ceiling has led to a potential double top signalling ETH is entering wave C of the correction - and could take us down to the 0.764 fib of the parabolic rise up, which rests on the diagonal trendline. The technicals align with China banning ICOs and could lead to panic selling if we fail to make any further highs.
The leading indicator RSI has broken down and the bearish flag on the OBV shows signs that there is potential for more downside.
Regardless of whether a further pullback happens, if ETH breaks up above the upper resistance there is no reason why we wouldn't see a rapid rise upwards towards $500+; however a pullback to ~$100 removes weak hands from the market and brings us down to huge demand area which will fuel a large subsequent rise.
Failure to break the ceiling has led to a potential double top signalling ETH is entering wave C of the correction - and could take us down to the 0.764 fib of the parabolic rise up, which rests on the diagonal trendline. The technicals align with China banning ICOs and could lead to panic selling if we fail to make any further highs.
The leading indicator RSI has broken down and the bearish flag on the OBV shows signs that there is potential for more downside.
Regardless of whether a further pullback happens, if ETH breaks up above the upper resistance there is no reason why we wouldn't see a rapid rise upwards towards $500+; however a pullback to ~$100 removes weak hands from the market and brings us down to huge demand area which will fuel a large subsequent rise.
Time and cloud analysis.
There have only been 2 other times this year we've been below a red cloud - one of those being prior to a $150 drop.
Using the mean time of wave A & B, we should hit a target of $100 by early October