Published
4 years ago on
May 31, 2019
Ethereum (ETH) has finally declined below the 50 day exponential moving average against Bitcoin (BTC) after testing the key resistance level yesterday. The price ended up closing below the 50 Day EMA, it tested it again today but failed to break past it. The daily chart for ETH/BTC shows that Ethereum (ETH) is primed for a strong downtrend from current levels. It is only a matter of time before we see the price break below the long descending triangle and fall to new yearly lows. This one chart should make it abundantly clear to most altcoin enthusiasts that the market is yet to come down harder on altcoins and a lot of Ethereum ICOs will be hurt pretty badly. Such a big wipe out of altcoins off the market might bring in the SEC and/or other regulatory agencies into all this and things could take a turn for the worse.
Ethereum (ETH) and the thousands of ICOs that were built on it are still under threat from regulatory agencies for serious violations of financial laws. It is only a matter of time before these agencies get involved and start questioning the dealings of some of these ICOs and how they were allowed to operate on the Ethereum blockchain. The result no doubt will also be a big blow to Ethereum (ETH) besides the thousands of useless altcoins that do nothing to add value to the market. Most of these ICOs were launched from Russia while they raised funds from other parts of the world. This has made Russian regulators and officials very lax about cryptocurrencies as they have seen the influx of new capital that these ICOs have brought. However, with the US cracking down on all things that take money from the US to foreign countries, we might see ICOs come under attack from regulatory agencies any time now.
Ethereum (ETH) remains in an uptrend against the US Dollar (USD). The daily chart for ETH/USD shows that the price faced a strong rejection at the top of the ascending channel but it still has room to rise further. In fact, we could see the price rise to rally towards the $300 mark. It is unlikely to touch that mark because that would be too obvious and a lot retail bulls are waiting to sell near those levels. The way it works is that the whales always dump on these retail bulls just before their psychological sell levels.
The price might continue sideways or attempt to retest the top of the ascending channel again but there is little doubt that it is primed for a big fall in the weeks and months ahead. Ethereum (ETH) has been massively overbought on larger time frames but it is now also overbought on the smaller time frames which mean we could see a move to the downside sometime soon. The 21 Day EMA remains to be a key level to watch for. Soon as the price breaks below this level, we could see it crash hard towards the bottom of the channel and eventually below it.
