Ethereum (ETH) Is Moments Away From A Game Changing Breakout

Ethereum (ETH) Is Moments Away From A Game Changing Breakout

Ethereum (ETH) is moments away from a game changing breakout. The daily chart for ETH/USD shows that the price has been stalling a move to the downside for so long that it is now at the absolute end of the descending triangle waiting for a breakout.  The probability of this breakout being to the downside is a lot higher than it being to the upside because ETH/USD is trading within a descending triangle and descending triangle have a history of breaking to the downside most of the time. That being said, we have seen the kind of manipulation in this market so investors need to be prepared for a fake out as well. Even if we see a fake out from here, the price has broken below a strong ascending channel which will now serve as strong resistance for the price to rally higher.

There is a reason why the price has been trading sideways for so long. The market makers wanted to keep both the bulls and bears confused as to the next move. The intent behind this was to encourage bulls to open more long positions and for the bears to be concerned that the price is not declining below the descending triangle which could mean that it may go up. This is a good play from a game theory perspective, one that the market makers have mastered effectively in this market. People, as a group, make the same mistakes over and over again which is what makes it easier for the market makers to play the same cards. Now, you cannot beat the market makers because they control most of the fake trading (wash trading) in this market, but you can ride the moves with them.

Do you really think that the people who run most of these exchanges with around 90% of wash trading have no clue as to what is going to happen next? Does that make any sense at all? They are not just doing this for the liquidity; they are dictating the direction of the price and if you zoom out and compare the 2014-15 cycle with the ongoing one you will see a lot of similarities. There are more irregularities this time because real trading volume is increasing, but that fact remains that the price action is still controlled by the market makers with more than 90% wash trading (according to Forbes).

If we take a look at the daily chart for ETH/BTC, the strong downtrend remains intact. We see it on the chart as well as on the RSI for the daily chart which means it would be very reasonable to expect further downside from here. The downtrend from here onwards is going to be extremely devastating for Ethereum (ETH) and other altcoins. Bitcoin dominance is on the verge of a breakout which would only happen if cryptocurrencies were in a bear market primed for further downside. All this boring sideways movement is going to come to an end soon as Ethereum (ETH) is moments away from a decisive breakout.

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