Ethereum (ETH) has long been very vulnerable and on the verge of a downtrend. If you zoom in on the price action around the 21 day EMA, you would notice how the price kept on facing rejection to break past that level. Even before that, the price had a hard time breaking past the 21 day EMA and considering that the cryptocurrency market is primed for a sharp decline from current levels, this move was unusual to say the least. That being said, it has now tested the top of the descending channel it has been trading in and is now ready to decline. Short term, we might see it rise towards $218.75 before it declines but it is extremely unlikely to break past that strong resistance.
The daily chart for ETH/USD shows that the price pimped straight through the 21 day EMA, the 50 day EMA and then the 200 day EMA without one single red candle in between. If we look at the price action on the smaller time frames, we can see that the manner in which the price moved was nothing short of manipulation. There were sideways moves followed by pumps instead of real trading interest which would show in the form of higher highs and higher lows on the chart instead of a single big candle pumping the price higher on multiple occasions. Now that this move has come to completion traders have two choices. If you are bearish you expect the price to decline within this descending channel to resume its downtrend and if you are bullish you expect the price to break this descending channel to begin another uptrend.
The daily chart for ETH/BTC shows that the price has now run into a strong resistance. Ethereum (ETH) will not have to decide whether it can begin a bullish cycle at this point or not. If the price ends up breaking past the 24,820 satoshis resistance, we would have confirmation that ETH/BTC has entered a bull trend. So far, the odds of it declining from current levels are very high compared to the odds of it resuming the recent uptrend.
Both Ethereum (ETH) and Bitcoin (BTC) dominance are at key turning points and the next few days are going to be critical for the direction of the market. A big move is in the offing and we will very soon see what it is. Being bearish on Ethereum (ETH) and other cryptocurrencies, I believe that the next big move will be the beginning of another downtrend in Ethereum (ETH) and the rest of the altcoin market because in my opinion this bear market is far from over yet. Even if we set the technicals aside for a moment, those of you who have been around during the previous bear market might be able to relate that this is not what it feels like when the bear market ends. You will hear more of “Ethereum (ETH) is going to zero, altcoins are a scam” before that happens.