Ethereum (ETH) Bulls Keep Ceding Ground, Price Remains Highly Vulnerable

Ethereum (ETH) bulls keep ceding ground. Now that the price has declined below the $150 mark, it seems unlikely that it will break past it anytime soon. The price keeps on losing ground printing lower highs and lower lows. The rising wedge on the 4H chart for ETH/USD has now been broken to the downside and the price has faced a rejection at the trend line resistance. Even if we see a near term move to the upside, Ethereum (ETH) will face rejection at the $147.65 level which is a very strong resistance. So, ETH/USD is expected to keep on declining further. If history repeats itself, we can expect it to decline again to the November, 2019 lows.

Despite any short-term bullishness, the price of Ethereum (ETH) faces some serious risks. There is a strong probability of a crash over the weekend that traders need to take into account. The price could easily decline down to the 61.8% which is not likely to hold. The area that has seen the most trading over the last 30 days and more is the $147-148 zone. That level will be extremely hard to breach now which is why we are more bearish than bullish on ETH/USD at the moment both short-term and long term. The market is on the verge of another downtrend and any bullish move to the upside should be considered as an opportunity to sell or short-sell unless we have a game changing breakout past the $147.65 level.

Ethereum (ETH) is on the verge of a sharp decline against Bitcoin (BTC) as it has now faced multiple rejections at the 38.2% fib extension level. The VPVR indicator shows that the 38.2% also coincides with a frequent trading zone that has now become a strong resistance zone. Even if ETH/BTC ends up breaking higher, we are still likely to see it face rejection at the 200 EMA and then the 21,459 satoshi level.

The cryptocurrency market remains more vulnerable than ever. With the S&P 500 (SPX) keeping on making new all-time highs, the probability of some sort of a correction in the stock market has now increased. Even though the cryptocurrency market did not rally along with the stock market in the recent weeks, it is very likely to decline with the stock market if we see a correction towards the end of the year. We have seen sell-offs in the cryptocurrency market leading to Christmas and New Year which is why traders and investors might want to be very cautious being bullish on the market for now.