Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Chart Of The Day: Ethereum Could Be Heading To $200

Published 07/12/2022, 11:49 AM
Updated 07/09/2023, 06:31 AM
  • Ethereum 2.0 weekly deposits have been falling steadily to the lowest on record.
  • The daily chart indicates a Rising Flag pattern
  • Ethereum appears to have completed a massive top on the weekly chart

Some analysts concluded that Ethereum's failure to close above $1.3K indicates further downside. We also consider this bearish, especially when bulls are winded as the crypto's network nears transitioning to proof-of-stake.

Ethereum Daily Chart

Ethereum's daily chart formation appears to be developing a Rising Flag—a bearish pattern. Why?

First, the congestion follows an exceptionally sharp drop in high volume. Second, volume weakened, not strengthened throughout the pattern's development. An ascending triangle happens when buyers become aggressive, but such a bullish development should have spiked volume. It did not. Finally, momentum weakened as well. The Rate of Change provided a negative divergence, as the indicator fell in contrast to the rising price.

If I am correct and this pattern is a Rising Flag, its implied target is a repeat of the preceding sharp move. Even a conservative measuring spells out a $900 drop from the $1,100 breakout point. Accordingly, if this freely traded asset follows the principles of technical analysis, it may reach as low as $200.

However, if we zoom out and see the larger picture...

Ethereum Weekly Chart

We can see that ETH completed a massive top. If the pattern's classic follow-through will apply, the implied target is below $0. To clarify, I am not saying that that will happen, only that this is the implied target based on the data. Also, even if it does happen, that does not mean it will happen today or that the price can't rise first, especially if it follows its Falling Channel.

Trading Strategies

Conservative traders should wait on a short for the price to close below the June 30 low and remain below the pattern for at least three days, preferably including a weekend. Then, they'd wait for a Return Move to confirm the pattern's integrity with evidence of resistance.

Moderate traders would be content for the price to fall below the June 30 low on an intraday basis and for the Return Move to reduce exposure, if not confirmation of the trend, before risking a short position.

Aggressive traders could enter a short now, providing they can withstand potential whipsaw.

Trading Sample - Aggressive Short Position

  • Entry: $1,060
  • Stop-Loss: $1,160
  • Risk: $100
  • Target: $760
  • Reward: $300
  • Risk-Reward Ratio: 1:3

Disclaimer: The author currently does not own any of the securities mentioned in this article.

Latest comments

It always amuses me how traders get emotional when the analyst does not go their way. They tend to have an oppinion formed in advance, and disregard with derrision anyone holding a different idea.Well then, dear traders...why read anyone's articles, if you already know best?? Why are you here, instead of being already filthy rich and on the beach? :):)Also, if validation and head-nodding is what you need, then look elsewhere. This is a place to discuss and see different ideas and decide for your own if the prevailing market is this or that. Only then, open your positions.I am not saying Mr. Cohen knows everything. Nobody does. If it were so easy, we would all follow an advice or two, get rich in a month and be out. Purely looking at the facts if life, I'm afraid it doesn't work that way.What also amuses me is their stand of how Mr. Cohen (or anyone) is somehow obligated to give that one life-changing advice to go long, to the moon, or anything...
...and when he does not, suddenly the analyst is the worst guy, robbing the traders of their God-given right to get rich. Well, think again! My final two cents, among all kinds, crypto traders tend to be the most emotional and hatefull. I rarely hear that kind of angry comments in stock-related discussions. "You missed the estimate by two days or by two percent, you ...hole" and such. I am betting my two cents those are most often hardened HODLers who do not understand people can be profitable in a down market. Instead of just covering their ears, listening to noone and blindly praying for the moon. Waiting for the flaming war now.. :)
Pinchas, boy has this not aged well. You scared people out of a 40% gain. So sad
Eth has gone to 1500 after this article was punlished .
yes, agreed
Bravo Pinchas!!! Good call!!!! 😂😂😂😂😂😂Pathetic....
Don't ever trust an article by a Cohen, Berg, or Stein.
OK, thanks commenter no one knows.
 you didn't
Yoh can still make a fortune off the downfall if you are still able to have an account in Arikinvest.com
dude makes perfect sense except he has no clue what he talking. If he was clued in just a bit could of made the valid point how eth once mirrored BCH and BCH now is .....
Full correlation with stockmarket and bitcoin as well The differences are minimal
Really? I would like understand about Bitcoin investiment
Full correlation with stockmarket and bitcoin as well The different is minimal
Sure, it could hit $200 or $100,000. What a useless article.
Oh, you're looking for someone to know the future? Sorry, this is a professional financial network, not astrology.
 yet here you are guessing and you guessed wrong
The analysis is very reliable. Read bitcoin section in his articles of the last 6 months! From H&S top to double top completion with a price target below 10k, all is getting true. And ethereum will not be saved in this bearish environment! Those familiar with technical analysis can understand this only.
Thank you, Mr. Doddl
What a load of BS. It follows bitcoin
 I'm not sure what this responds to, Edward, but if it's to my having said that I did not say it will happen in one day, it generally takes the same amount of time of the previous pattern. So, if you're talking about the $20 target, based on the top, it should take 13 months since the May breakout. Happy trading.
Mr pinchas you not answer my.qiestion in another article : market up or down ??
 Which market, which time frame?
@Pinchas Cohen, what is your success ratio for your trade recommendations? How can I find this.
Your equivocation aside, this sounds like a call that will be either right or wrong: "If I am correct and this pattern is a Rising Flag, its implied target is a repeat of the preceding sharp move. Even a conservative measuring spells out a $900 drop from the $1,100 breakout point."
 Correct, but you may enter a trade that will still fail, because of whipsawing. At $62K I gave a BTC call to $30K, before $20K. I got a lot of hate for those. How insane am I that BTC will be halved and then some. But someone commented that I was wrong, because it went up to $64 - before it came crashing down, like I said it would, in opposition to the "to the moon" consensus, which included major financial institutions -  so, he concluded, that my analysis was wrong.
Short answer, I don't know. I provide an analysis. Ten different traders can have ten different results based on their timing, budget, and temperament. Nevertheless, here is my column https://www.investing.com/members/contributors/201478083/opinion. You have over 5 years, with 2,251 posts. You're welcome to go through them and see for yourself.
this gutly knows nothing.. shouldnt even be commenting... said gold skyrocket.. said bitcoin 5000 and now stupud ether call to 200.... what a joke man.
 Or waste his time reading posts of "this gutly knows nothing."
Apologies. auti correction makes it look spurious. @patel. since there is no way to verify your claim of making 27m last year, I will leave it alone but a simple question: why are you not out having fun? instead of getting angry. since the market had been down last 6 months, you must have made it as a short?
 Insightful. He could be a bond trader, but I highly doubt it.
Should be $0 along with all the other crypto "assets"
Should and would are two different things.
It's still 200$ higher than the value of it
Nice post
Thanks, Ahmad
I was thinking $750 to $500 but I’ll take $200
0.0000000001 cents for Ethereum, and 0.000000001 cents for BitCoin
when institucional analyst says it goes to 200$ (80% drop) expect a big reversal Up
I'm not an institution. I wish I was. Nevertheless, I did not say it was going to $200.
Aggressive Long Position, but SL above the Entry?? Are you healthy? It’s a short position?
You're right . Error. Thanks for pointing it out.
i will be waiting for 200to load it up🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
Happy trading!
eth will soonndrop to zero.
I suggest you read the article again. I did not write that.
Your predictions are getting ridiculous and offensive... You're just spreading FUD. And time will prove that. I'll report you to Investing.com. Pinchas tu madreeee
After seeing this, I am going long. Inverse Pinchas does pretty well
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.