Ethereum is still playing the bear game like I suggested in the previous report, we are now testing the short term support zone.
As we can clearly see, $600 failed to act as support, $550 got tested and failed fairly quickly, confirming the current bearish trend the market finds itself in. The H&S candlestick pattern has now clearly broken to the bottom side and should the bulls stay shy of the arena we will see more selling action.
In the markets momentum can change suddenly and go in either direction, like I mentioned in previous reports, picking bottoms should always be considered higher risk trading. At the moment both my indicators are confirming the bearish H&S pattern.
I am looking at the $500 – $550 zone to see what happens, should prices fall below this I would imagine more buyers will be willing to step in at $400 a pop. Trading volume is low and I am not planning on opening any longs or shorts until we get some decent price action. Safe trades.