Hi friends! Welcome to this update analysis on ETHEREUM! Let's get right to it. Looking at the four hour chart, you can see that ETH remains trapped inside of a big downtrend channel (black channel.) After forming a small head and shoulders pattern, just above the 200 EMA (in purple) ETH rolled over to the downside, surpassing the 61.8% retracement level, which
was the target for this particular head and shoulders pattern. Since we are now below the target area, we're kind of in no man's land, in terms of technical indications. Looking at the MACD , and see that it's continuing to expand to the downside. Additionally, it has just broken below the zero line, which is as technical sell signal in itself. However, a significant down move has just occurred, so perhaps ETH will consolidate for a moment. Let's now stand back, though, and look at the broader picture. I see big peaks and rollovers forming. you can see the obvious peak and rollover at the all time high, and then the one in the middle of the channel. The look of the current price action suggests that we're forming another rollover that is similar to the last two — each of which generated a retracement to the bottom of the downtrend channel . I'm not saying that we're going to drop to the bottom of the Chanel right now, I'm just showing you that it's possible, given the overall look of the chart. If ETH continues to drop from here, the 770 level should be the next support. Beyond that, ETH could see the 78.6% retrace. Something that is interesting to point out, about the mechanics here, is that ETH rolled over very sluggishly, before it even reached the top of the channel. Compared to the other two peaks, that definitely shows a decrease in strength. Currently, the volume is primarily red, and we appear to be creating a series of small bear flags as we continue the descent. If ETH pops to the upside from here, the 61.8% retrace will be initial resistance. I'm the master of the charts,
