ETHUSD Weekly neutral with a bearish bias. Recommended ratio: 35% ETH, 65% Cash. *(Short-Term) Bottom Watch. Cryptos are seeing a relief rally after a majority of them have now seen 80%+ drawdowns (ETH is down -82% from November 2021 ATH). A more dovish stance from JPow tomorrow may be bullish but with new home purchases going down and inflation continuing to rage on it's going to be hard to call this the bottom.* Price is currently at a critical juncture in that it's testing both the 200 MA and the uptrend line from June 2020 at ~$1200 (in addition to still technically testing the lower trendline of the descending channel from October 2021). Volume is starting off the week a bit slow and is currently Low after being High in last week's session; it is currently on track to favor sellers for twelve consecutive sessions if it manages to close this week in the red. Parabolic SAR flips bullish at $3600, this margin is bullish. RSI is currently flatlining for a second consecutive session at the ATL of 25.88; it's still technically testing the lower trendline of the descending channel from August 2020 as support at 29.80. Stochastic is currently flatlining at max bottom for a fifth consecutive session. MACD is currently trending down slightly as it prints a new ATL at -493.99 with no signs of trough formation. ADX is currently trending up slightly at 30 as Price continues to break down, this is bearish at the moment. If Price is able to bounce here at the 200 MA + uptrend line from June 2020 ($1200) then it will have to reclaim support of the lower trendline of the descending channel from October 2021 ($1230) in order to test $1407 support-turned-resistance. However, if Price continues to fall here, it will likely formally retest the lower trendline of the descending channel from May 2021 at ~$850 before potentially retesting the uptrend line from January 2017 at ~$300 for the first time since March 2020. Mental Stop Loss: (two consecutive closes above) $1230.
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Similarly, a more hawkish stance from JPow tomorrow may potentially be bullish in the short term as investors would then see higher chances of inflation slowing down by Q1 2023.