After two weeks of flat range, a new strong bearish trend was formed for Ethereum.
On Monday, May 21st, MACD crossed below the zero line on Ethereum hourly chart – it was a “SELL” signal – and we sold ETH, that we previously bought for $685, at the level of $699. This week ETH lost more than $150, forming a “dead cat bounce” yesterday evening. Now it continues its freefall, broking the descending triangle. Ethereum price is around $550 at the moment of writing, making a new low since April 19. There are no strong support levels below, so Ethereum can decline further in upcoming days.
We had long positions opened on May 18th at $685 which were closed on May 21st by the trailing stop set according to the lower border of the Donchian channel, at the level of $699. So, we made a small profit of roughly $14 per ETH. Current drawdown gives the opportunity to make new purchases cheaper, so we will wait for new entry signals.
Previous Day Close = $583
All-Time High = $1,432 on January 13th, 2018
Current Drawdown from ATH = -59%
Trailing 12 Months Return = 220%
Year-To-Day Return = -23%