ETHEREUM - Double Divergence! 🚀

What is Divergence?
Divergence indicates to us that a trend is losing momentum and could be ready for a reversal or a deeper correction soon. When we see divergence, we should be cautious when trading in the direction of the trend and look for countertrend/reversal trades.

How to identify Divergence?
When price is making lower lows, MACD (or RSI ) will show higher highs = Divergence. (Vice Versa)

We can see that we have divergence on the bigger bearish wave indicating that there's a reversal coming soon. We also have divergence on the current 5th bearish leg, also indicating that there's a reversal coming soon.

We are currently on the last legs of this bearish wave. Looking for one more correction for a move lower before we start the next bullrun.

Trade Idea:
- Watch for a correction for subwave iv
- Enter on break of correction with stops above that recent high
- Target: 1200, 1100

Please note that the above trade setup is a short trade. The bigger trade will be the reversal trade. Will update this chart when its ready!

See below for our last few ETHEREUM analysis.

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Have a look at our recent analysis on CAKE

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Updated Ethereum analysis