Published
4 years ago on
May 23, 2019
Ethereum (ETH) is currently trading around $235 as price declined significantly in the last 24 hours all the way from the top of the descending triangle seen on the 4H chart for ETH/USD. This decline seems to have made the bulls worried even though normally they are more interested in buying the dip. Retail bulls did buy the dip when the price made its first red candle to the downside. It left a long wick down but was soon followed by subsequent red candles that pushed the price deep into red. As of now, the price remains inside a descending triangle and it is unlikely to break below this triangle without a move to the upside first. That being said, this is certainly not the time to be looking for long positions on ETH/USD. The trend has changed to the downside and the price will crash hard once it breaks below this triangle.
Those that are not convinced that the bear market is not over yet might still want to realize that ETH/USD has to come down to the bottom of the ascending channel even if it is to begin its next rally from there. In order to do that, it will first have to break below the descending triangle. Considering the manner in which the price has dropped and that we could see the RSI approach oversold levels short term, it would be reasonable to assume that a move to the upside is in the offing. This move may not be very strong and could be more of sluggish sideways movement for a while till the price is ready to fall below the triangle. The bulls might put up a final fight before the bears can assume full control. The trend seems to be on the side of the bears this time and they are likely to capitalize on that.
Ethereum (ETH)’s prospects of a successful rally against Bitcoin (BTC) have been fading away more than before. The price is now trading within a descending triangle that is very likely to be broken to the downside. The 4H chart for ETH/BTC shows that the price is struggling to break past the 50 day moving average. Although we could see a short term rally to the top of the descending triangle, it has become quite clear that a crash is around the corner. Once ETH/BTC breaks this support, it will have nothing in its way to stop it from declining all the way down to its yearly low or even lower.
The future prospects of Ethereum (ETH) from an investment standpoint remain bleak on multiple fronts. There are a plethora of new blockchain projects that are quickly catching up to do what Ethereum (ETH) does in better ways. Furthermore, investors are still not happy about the way decision making works on the Ethereum blockchain. We might see short term interest in the cryptocurrency as it is still the second largest coin by market cap but long term it is very likely to lose its spot as the second largest coin by market cap.
