Ethereum is the first coin (out of several) that we're going to cover tonight - so let us waste no time in dissecting Ethereum's price action moving forward.
A Look at Ethereum's Price Charts
Observing the Overhead Downtrend Resistance First
The next chart explicitly points out the overhead downtrend resistance for Ethereum (remember, we're on the daily resolution here):
Addressing the Second Arrow (Latter on our price chart)
In the preceding chart, the second arrow pointed to a section of Ethereum's price action where it appears that the price failed to breach the overhead diagonal resistance (i.e., was pushed back via genuine overhead diagonal resistance) - but it doesn't quite touch.
See below to see what we mean:
Many traders make the fallacy of believing that a price must touch the lines that they establish in order to be considered genuine overhead resistance points.
This is a Foolish Idea!
The lines that are drawn on these charts span across several months (well over a year), and the GUI (trading app) that we're using here (TradingView), is far from infallible in its measurements.
So being a stickler about the placement of the line is a meaningless exercise (and a general waste of time as well).
Expanding the Resolution of the Chart to Get the 'Full Breadth' of Ethereum's Dismal Price Action
On the daily resolution, if we "zoom out", per se, and then calculate the depreciation in price from Ethereum's peak to its localized bottom (mid-March), the following may be observed:
Granted, since Ethereum's prior localized bottom (in mid-December), the bounce back in price was significant.
However, once the price had hit its peak from that point (following the +300% appreciation in price), the current overhead downtrend resistance that we see now was subsequently formed:
Things Look Bad For Ethereum Right Now if We're Being Honest
Ethereum's Relative Strength Index
To be clear, we're looking at:
B) On the daily resolution
Balance of Power (RSI)
This is a custom indicator that we created (we'll go ahead and translate the definition of how the Balance of Power RSI works in a future price analysis).
For right now, check out the Balance of Power RSI below:
A) From the ludicrous height of the 'Balance of Power RSI' (pictured below)
B) The height described in 'A' occurred around April 9th, 2020. From there, the buy pressure declined steeply
C) As the Balance of Power RSI continues to reflect increasingly heavier amounts of sell pressure, the bears have the 'winds at their back', so to speak