Chart for ETH/USD
Ethereum (ETH) has been trading in a strong ascending channel since the first signs of a trend reversal appeared. However, all hope of a recovery is once again lost as Ethereum (ETH) has just broken this channel. The above chart for ETH/USD shows that Ethereum (ETH) has entered a descending channel on the 4H timeframe. The price is likely to resume trading downward as there is no near term support. This has come as a big disappointment to Ethereum (ETH) bulls who were expecting a recovery. It has become quite clear during the past few weeks that Ethereum (ETH) is no longer as charming as it was before. Maybe it’s investors that seem to have lost interest or perhaps it is just market manipulation. In any case, the bulls are not coming to the rescue.
Ethereum (ETH) broke a critical market dominance trend this year. The past few months, we have seen more altcoins directly paired to USDT. In addition to that, there has been a lack of ICOs during the correction which has lowered demand for Ethereum (ETH). These are not the only reasons. There are a lot of issues with Ethereum (ETH) itself that has got investors jump shipping. Ethereum (ETH) is still a wonderful project and its positive influence on the blockchain industry cannot be ignored. However, it is rapidly losing its charm as an investment. Its founder, Vitalik Buterin does not seem to be interested in the price of ETH. On surface, this may not seem like a big deal as founders, once they have made their money, are more interested in the tech than the price. However, this kind of attitude could drag the price of Ethereum (ETH) to zero as Jeremy Rubin pointed a few weeks before.
Chart for ETH/USD
The Ethereum (ETH) foundation needs to set something straight. It needs to be clear whether this is a nonprofit blockchain that is going to serve as a free facilitator or is it a blockchain that actually rewards its users for holding its token. It needs to be clear what value Ethereum (ETH) has as a token. So far, Ethereum (ETH)’s value is based completely on perception. Let me explain. First of all, there is no fixed supply. How do you ascertain the value of something that is not finite? Second of all, Ethereum (ETH) developers and miners are seriously worried about the transition to proof of stake. However, that does not seem to be an impediment so long as one man (Vitalik Buterin) calls the shots.
Ethereum (ETH) has had an extensive correction that has by far been one of the biggest in its entire history from an ATH. However, there is still no sign of a recovery. The technical indicators on the above chart, both the RSI and wave trend point to a very bullish outlook for Ethereum (ETH) in the near future. However, so far the price action has not reflected that. Ethereum (ETH) still remains below the 10 Week EMA. In order for the trend to reverse, the price will have to close above the 10 Week EMA. Even if Ethereum (ETH) begins a new trend with the rest of the market, it is very unlikely to make similar gains as before.