Today, we’re taking a closer look at Etsy, which has fallen below $100. Not a great sign for the stock, but let’s dive into it. I want to remind you this isn’t a recommendation—just my personal opinion. If you’d like to see more charts and insights, check out our Discord channel or head over to TradersFly.com for live classes, recordings, and tons of great content on options.
Etsy’s Situation
Etsy’s earnings showed weak guidance, though not all the reports were terrible. For example, Q1 2022 had an EPS beat, but just because the earnings were better doesn’t mean the stock will rise. The broader market sentiment plays a huge role, and with recent Fed announcements, people are still processing everything.
At the critical $100 level, some traders may start shorting the stock. It’s a significant point—falling below this threshold can be a red flag. Still, sometimes stocks dip below $100 and quickly snap back, like Zoom. But in Etsy’s case, it’s not looking good, especially with increased selling volume, which is growing and concerning.
A Steep Decline
Etsy has dropped nearly 70% from its highs of $300, which is quite dramatic. Previously, it looked strong, breaking out of compressions and moving higher. However, with it now trading under $100, the next critical level to watch is around $72.31, where there might be some support.
What to Watch for Next
- $100 Level: Will it stay below this, or pop back up?
- $72.31 Zone: A possible bounce area if it continues to fall.
- $50 Level: Another psychological level if it drops further.
There’s a danger here—just because a stock gets cheaper doesn’t guarantee it’ll recover. Look at DKNG as an example. People were buying it at $75, then $50, then $30, and now it’s down to $15, with the potential to fall to $10. The point is, cheaper doesn’t always mean a stock will rise again.
Etsy Stock Prediction
Right now, even though Etsy looks cheap compared to where it was, that doesn’t mean it’s on its way back up soon. I’m watching for a sideways price action with the next major support around $73. If that breaks, we could see it test $50, and possibly even $30 if the market remains weak. At that point, it would be retracing back to its early 2020 levels.
Final Thoughts
We’ll have to wait and see if Etsy can get back above $100. But if it doesn’t, watch for critical levels at $90 or $73. Remember, these moves don’t happen overnight—it takes time to see compression and upward trends, so patience is key.
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