It's four hours into the new trading day candle, and we're already down almost 10%. Unfortunately, the signs don't look much better that things will reverse anytime soon. Here's why...
We just saw THE LARGEST bullish volume bar we've ever seen on the 4-hr chart. This volume bar was an extremely bullish looking hammer with a lower wick over 10x the length of the body. Bulls were buying the dip (myself included) and we seemed like we were on our way to seeing some upsides. We've now seen two large bull volume candles forming hammers which had zero follow through by the bulls, and the gains were extremely easily replaced due to increasing bear volume.
As I predicted earlier, ETH would test $875 which it broke and found support at $852. It's now not that far of a reach down to the $771 support. Whether or not the bulls hold this level is anyones guess. It seems the indicators aren't a factor at all today.
As the day progresses, we might see a rally, but after two failed bull hammers with decent volume, I'm still expecting more pullbacks. The typical expression is "stairs on the way up, elevator on the way down." What we're seeing here is definitely an example of that.
ETH will find support and rally, but I'm unsure if we'd see a higher high anytime soon. CCI just crossed 0 on the daily and daily RSI is now below 50 and heading lower. I think there's still some downward momentum with FUD.
Enough for now...thoughts?
Happy trading!
