Ethereum Dumps More Than 25% This Week – Is It Poised For A Snap Back?

ETH has been in a major downtrend over the past few days plummeting by 25% in 4 days.

There were obvious reasons to short from that point 4 days ago as we broke under a major uptrend line and were rejected by a major downtrend line from March at the same time.

Target would have either been the next uptrend line or a 1:1 ratio of the previous downward wave. Ethereum gave us yet another short set up as we broke under and was rejected by the trend line.

Ethereum has given us no reason to go long as we still cannot get over the red downtrend line.



So with that, if you have not already entered a short position or a long position from the 1:1 ext there is no reason to enter any trade. What we will look for instead is ETH to break out of this downtrend and over the horizontal green support in order to go long, or for a risky long you could enter on the first retest of broken trendline(red).
If you have entered a short as I have (my targets are in red circles) use a trailing stop and move as we go. If and when we break out my long targets are in green circles.