Market-Wide Bearish Patterns Emerge
Greed-driven price action dominates Ethereum, EOS, and NEO, signaling an impending market correction.
Ethereum Nears Exhaustion: Correction Likely
Ethereum’s bullish surge since mid-December 2023 saw a 70% price increase, from $117 to $196. However, technical indicators suggest exhaustion:
- TD Sequential Indicator: A sell signal emerged on ETH’s 1-day chart via a green nine candlestick, forecasting a 1–4 candlestick retracement.
- Bearish Divergence: The RSI shows lower highs while ETH prices hit higher highs, indicating weakening momentum.
Key Levels:
- Support: $165 (61.8% Fibonacci) or $156 (50% Fibonacci).
- Resistance: A breakout above $196 could propel ETH to $209–$223.
👉 Track ETH’s real-time movements here
EOS Faces Potential Downturn
EOS doubled in value since December 2023 ($2.16 to $4.40), but TD Sequential signals suggest a pullback:
- Two sell signals (aggressive thirteen and green nine) confirm bearish momentum.
- MACD Indicator: Nearing a bearish crossover, reinforcing downside risks.
Critical Support: The 200-day MA at $3.30 (20% drop from current levels).
NEO’s Bullish Trend with Short-Term Retracement
NEO surged 60% in 49 days but now faces resistance:
- TD Sequential: Green nine candlestick hints at a 1–4 candlestick drop.
Bullish Signals:
- Golden cross (100-day MA above 200-day MA)—historically preceded 116% rallies.
- Cup-and-handle pattern suggests a 37% upside to $17 if $12.4 resistance breaks.
Near-Term Targets:
- Resistance: $14–$15.62.
- Support: $10.20–$10.80 retracement zones.
👉 Explore NEO trading strategies
FAQs
Q: What triggers a crypto market correction?
A: Overbought conditions, divergences (e.g., RSI vs. price), and sentiment extremes (like the Crypto Fear and Greed Index) often precede corrections.
Q: How reliable is the TD Sequential Indicator?
A: It’s effective for short-term reversals but should be combined with volume analysis and other indicators (e.g., MACD).
Q: Should I sell my ETH/EOS/NEO holdings now?
A: Monitor key support levels. Exiting partial positions at resistance or holding with stop-loss orders can mitigate risk.
Conclusion
Ethereum, EOS, and NEO exhibit classic retracement signals amid overextended rallies. While bullish structures like NEO’s golden cross persist, short-term corrections appear imminent. Traders should watch Fibonacci levels, moving averages, and breakout channels for actionable insights.
Final Thought: Always balance technical indicators with macro trends—crypto markets remain volatile.