Ethereum (ETH) Bulls Have One Last Chance To Save The Price

Ethereum (ETH) bulls could still save the price as hard as it may seem in the face of all the bearish momentum for now. The 4H chart for ETH/USD shows the price bouncing off the key $120 support zone. It is now trading within a falling wedge that may soon be broken to the upside now that the price has reached the bottom of it. We have recently seen how falling wedges can be invalidated during strong bearish moves but this time the price has found a strong support zone. A decline below this zone would mean that the bulls have lost their last chance to save the price.

The vast majority of cryptocurrency traders are still hopeful that the price of Ethereum (ETH) might rally to a new all-time high during the next cycle and the market makers and the whales realize this. So, if we see a big move to the upside, there is a good chance that many retail bulls would get behind that move. Most traders end up making the same mistake over and over again which is why they are consistently unprofitable. They might make a good trade or two but they end up blowing their accounts soon after. Throughout this bear market, we have seen the big players play the small players over and over again using the same tactics. This does not apply to the bulls alone. Now that the momentum is overly bearish, a lot of retail bears might be thinking about going short and they will only to be shaken out soon after.

Ethereum (ETH) remains in a downtrend not only against the US Dollar (USD) but also against Bitcoin (BTC). However, near-term we might see the price be saved by a strong move to the upside. The daily chart shows that ETH/BTC is currently struggling to break past the 61.8% fib level but it has room to rally further and there is a good chance that it will.

We have yet to see Ethereum (ETH) test the 200 day moving average against Bitcoin (BTC). This does not have to happen as a prerequisite to the downtrend but a rejection at the 200 Day MA would provide much needed clarity as to the mid-term direction of the market. At this point, some sort of a move to the upside is quite probable as the market makers would want to shake out the retail bears that are looking to ride Ethereum (ETH) down to a double digit price.