Ethereum (ETH) rises towards the 38.2% Fib extension level but faces a strong rejection. This might be a sign of weakness short term but the price is still all set for a rally towards $170 in the days ahead. It is true that the bulls do not seem to be in control but the bears are also beginning to give up. This is because the drop that retail bears have been anticipating for the last few weeks is nowhere to be seen. Most of the bears that have high leverage positions shorting Ethereum (ETH) are concerned that the price has not dropped yet. In fact, if ETH/USD shoots up towards $170 to complete the bullish gartley pattern, we would see the number of margined Ethereum (ETH) shorts drop heavily.
Stochastic RSI for ETH/USD on the 4H time frame points to the possibility of a strong move the upside in the near future. This move is very likely to occur this week which is why the bulls might temporarily regain control this week. As always, this would give the crowd the wrong idea and most people would pick the wrong sides based on short term developments. The reason the majority loses money trading is because the majority is always wrong. Now, there are a lot of ways that they can be wrong but the most common of them is that they forget which time frame they are taking into consideration. For instance, we cannot simply say that ETH/USD is bullish or bearish or that the price is going up or going down. We have to take a time frame into account. The price could go up on the daily time frame but be due for a strong decline on the weekly time frame.
The 4H chart for ETH/BTC shows that the price has room for a rally to the upside but there is not much to expect at this point. The probability of a move to the downside is a lot higher than that of a move to the upside if we talk about a larger time frame. However, short term as the Stochastic RSI shows there is room for a reversal and the price might end up hitting the top of the symmetrical triangle again. It is not likely to break above it and will face strong resistance which would push it back inside the triangle and ultimately below it.
Ethereum (ETH) has a lot of interesting events lined up in the future. In fact, some people on Augur are already betting on whether Ethereum (ETH) could surpass Bitcoin (BTC) in market cap by December, 2019. This goes on to show that people believe that Ethereum (ETH) has a lot of potential and its market cap is going to grow a lot higher in the months ahead. However, as mentioned before, we have to take time frames into account. Even though Ethereum (ETH) might be bullish long term, it is due for a decline near term and the price is extremely unlikely to begin a bullish cycle without finding a bottom first.