Ethereum (ETH) Technical Analysis: Ethereum (ETH) Enters the Seventh Month of A Correction
On a weekly basis, ETH is down 10 percent and this is contrary to the fundamentals that are overly supportive of Ethereum (ETH). Remember, not only are there new developments as Mokens launching and implementing new ERC standards but the approval of ENS by ICANN is definitely a huge plus for Ethereum (ETH) propulsion to mainstream.
From the News
- Finally, the first composable ERC-998, non-fungible token is ready to launch on the Ethereum mainnet. A composable token is simply a unique digital asset and there are of two types: top-down composables and bottom up composables. ERC-998 tokens according to Mokens are an extension of the ERC-721 tokens that makes it possible for one to own other ERC-721 tokens. In turn ERC-721 tokens can also own ERC-20 based tokens.
- Trinity, an agnostic second layer solution for Ethereum, state channels might end up being deployed by end of August. Thereafter the team plans on setting a Trinity-Ethereum node set up page for non-technical users and later there will be optimization of Trinity app and NEO nodes.
- In collaboration with Ethereum Name Service (ENS) and Mind + Machines Group (MMX), ENS will be ready for integration with the WWW via their top level domain, luxe. With this, every luxe domain will be considered an Ethereum asset and in that case it shall have a corresponding hash rate on the Ethereum blockchain. Encouragingly, luxe domain will be resolvable after getting the much needed approval from the Internet Corporation for Assigned Names and Numbers (ICANN).
Ethereum (ETH) Technical Analysis
By dropping 10 percent week over week, Ethereum (ETH) is $50 away from 2018 lows and $3 from breaching the lower limit of our $150 trading range with floors at $400.
Anyhow, odds are we might see further losses of Ethereum (ETH) considering last week’s bear engulfing candlestick breaking below July attempts of higher high.
Besides, by closing as a strong bear, ETH sellers are now syncing with May-June losses and snapping back to the last seven month bear trend.
On the other hand though, Ethereum (ETH) bulls need to reverse last week’s losses and perhaps print above $550 for them to stand a chance against this 13 percent month over month losses. All in all though, we recommend shorts with ideal stops at last week’s highs with first bear targets at $350 and later $150.
Not only are we bearish for today but we also expect a follow through of yesterday’s sellers. Ideally, what we wish to see is a whole bear candlestick closing below $400. $400 is our main support trend line and the lower limit of the last 40 day trade range.
As we have reiterated time and time again in our past Ethereum (ETH) technical analysis, when that happens, we can begin unloading ETH on every pull back or retest of $400 with assurance that the third phase, the trend resumption stage, of that bearish break out pattern of June 10.
Our first and short term target will be $350, 2018 lows and later $150, Q4 2017 lows.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
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