Ethereum (ETHUSD) Retraces 50% Of Gains Since March 2020 Low

Ethereum (ETHUSD) is trying to firm after this past week's bubble burst, but remains vulnerable to further material downside in the next few weeks to months.  Significantly, ETHUSD's ascent in late April above the upchannel resistance (on the daily and weekly chart) that began late 2020, from roughly 3k to above the psychologically key 4k whole figure level, was a blow-off top that has now completely reversed, with ETHUSD retesting the same upchannel's support.  With ETHUSD currently at the 50% Fib retrace of the rally from the March 2020 low to the May high, odds are moderately high for ETHUSD to stabilize for at least several more days as part of a bear flag, where ETHUSD is likely to testing the 61.8% Fib by month end.  Odds for now are moderately low for a complete unwinding in the next several months of the massive accelerated run-up that began from late 2020.  ETHUSD's correlation to BTCUSD (on a weekly chart) continues trending lower, and is at the lowest level since October 2019.  Congratulations to those who heeded the warning May 16th of the major top forming, and to longer term bulls who remained long ETHUSD or initiated ETHUSD longs after the March 2020 crash, with bullish developments profiled in the March 29th, 2020 analysis and increasing upwards momentum cited April 26th, 2020.   I profitably closed shorts this past week, and have entered a small long in the 2100-2300 range, targeting 2400-2600 tentatively for mid week, after which I'll focus on going short again.  The weekly and daily RSI, Stochastics and MACD are turning down or steadily sloping down.

Ethereum (ETHUSD) Weekly/Daily





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