ETH, DXY, and VIX!
Today and after US data, the market had more volatility day. ETHUSD started a day at 3,250 USD, went down towards 3,158, and then touched a daily high at $3,283 before another up and sharp falling. fist up and down movements in the chart were mostly because of up and down in the USD Index, as we are watching the ETH price against the USD in the ETHUSD chart. And later, while the USD Dollar again started to regain after sharp up and fall, Ethereum price started to fall which can be the reaction to the US Dollar chart and Volatility chart. As we can see in the below VIX chart, market risk is increasing. Higher risk in the market usually puts pressure on the risky assets in the market. According to the market sentiment and risks, this overall downtrend still has more room to go.
From the technical point of view, the price downtrend at $2,845 has been breached. Above this level which is the 20DMA as well, we can see a short-lived uptrend, however, bulls needed to confirm themselves above 3,400 US dollars as key resistance and the higher band of Bollinger Bands. As long as it is trading under this key resistance, the increasing price will be so unlikely. On the flip side, any downtrend also will start under 20 DMA (Middle line of BB). Breaching under this level can put the lower band of BB at 2,200 in the spotlight. In a bit bigger timeframes, if we can see the Weekly candle will be closed under 2,535 we can see the bigger crash in the market.
For now, in the Day trading timeframes, price is decreasing under the middle line of BB, and at the same time, we can see market volume is increasing and giving more opportunity to the bears in the chart with $2,845 as the next target.
