Ethereum (ETH) Remains A Sell Below $150, Odds Of A Bullish Reversal Very Low

Ethereum (ETH) Remains A Sell Below $150, Odds Of A Bullish Reversal Very Low

Ethereum (ETH) has shown signs of extreme weakness. The near-term bullish outlook is now dead in the water as the price has declined sharply below the $148.95 support. This is a level that the price has tested as support and resistance multiple times. The fact that ETH/USD has declined not only below this level but also below the 38.2% tells us that a big move to the downside might be just around the corner. We have seen that ETH/USD did not fall much lower than the previous lows compared to Bitcoin (BTC) during the last such decline.

RSI on the 4H chart for ETH/USD shows the price struggling to break past the trend line resistance which used to be the trend line support. The price might end up rallying past the $148.95 resistance near term but we would want to wait for a follow through before being bullish. If the price fails to do that and declines instead, the we could expect a double bottom in Ethereum (ETH). We would want to be careful not to FOMO into the market around then but it would certainly be a very good point to buy some coins for near-term.

Ethereum (ETH) risks a brutal decline not only against the US Dollar but also against Bitcoin (BTC). We have discussed a few times before how ETH/BTC might end up making he same rally that it did in November. However, the difference this time is that it has faced resistance at the 38.2% fib level. If the pair succeeds in breaking past this fib level, then we could definitely expect a rally towards the 200 moving average and potentially much higher.

However, if it faces a rejection there and declines, then it will have to fall down to the 61.8% and eventually much lower. All of these developments point to the same conclusion that this may not be a good time to invest in cryptocurrencies as it might be too late to get out of the market if it starts to crash. Cryptocurrencies are already in a bear market and even though it may take a long time for the price to rally by printing a large number of bullish candles, it takes only a few bearish moves to erase it all.

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