ETH: Bitcoin Regaining Dominance; Possible 30%+ Drop

Ethereum is currently printing a large bearish engulfing candle on the weekly chart which may indicate further consolidation and then a possible drop below the immediate parallel channel. Price action is sandwiched between two major resistance and support zones, which now makes it a technical 'NO TRADE ZONE'. However, by the looks of it, ETH can be creating a LARGER ascending triangle on the monthly, which may be bullish, but bearish on the weekly. If broken, we can expect a 30%+ drop from here, which means if we had to predict the direction of Ethereum right now, we would most certainly assume down via probabilities. We will try and go against the major crowd who thinks that this pullback was nothing; however, we beg to differ and try to think in terms of a contrarian thinker.

Technicals for the weekly:

- We have strong support in the sub $300, and even further down in the mid $250 range. This is known as our 'DEMAND ZONE'. Our demand zone is where most of the liquidity will take place for shorts.
- We can start off by drawing simple trend lines , and one of the major trend line support suggests that we are in a bearish rising channel that looks very similar to the setup of Bitcoin before it dropped. This drop if played on a week by week basis, can show that it can drop up to 30%+ total, making this a fantastic R:R (Risk Reward) trade.

Trade Safe.
X Force