Is Ethereum (ETH) About To Make A Big Move Against Bitcoin (BTC)?

Is Ethereum (ETH) About To Make A Big Move Against Bitcoin (BTC)?

Ethereum (ETH) is about to make a decisive move against Bitcoin (BTC). The 4H chart for ETH/BTC shows the price trading within a large symmetrical triangle. Either it will break below it and resume its downtrend or we might see a move to the upside to potentially test the 0.0197 BTC level and possibly a retest of the top of the triangle. The probability of that happening remains low at the moment but considering that there is extreme fear in the market, we wouldn’t discount a potential bullish move to the upside to make retail bulls greedy once again before the beginning of the next major downtrend.

The altcoin market has suffered a lot recently and the 4H chart for ETH/BTC shows us quite clearly how Ethereum (ETH) has been in a downtrend against Bitcoin (BTC) for the most part except for limited periods of upside in the recent past. If it declines further, it will be a painful situation for the altcoin market because most cryptocurrencies have already lost significant ground against Bitcoin (BTC). If they fail to recover that ground before the beginning of the next downtrend, then they risk falling even harder during the next downtrend as altcoins tend to decline much more aggressively during a market crash. So far, investors are hopeful that Bitcoin dominance (BTC.D) may decline down to the 200 day moving average allowing altcoins to see short-term relief but things could change quickly.

Ethereum (ETH) could see further downside against the US Dollar (USD) quite easily because it has repeatedly failed to break past the key resistance level of $133.83. Until and unless we have a decisive break above this level, the price risks declining much lower within the descending channel. Near-term, it could find support at the strong psychological level of $100 but eventually it will have to decline much lower. The cryptocurrency market is at risk of a much more aggressive downtrend which is why this is not the time to be greedy. Even though Ethereum (ETH) might see short-term upside against Bitcoin (BTC) even though it looks quite unlikely, the fact remains that it will have to decline much lower in the long run.

Chasing any potential bullish move is not worth the risk/reward at this point and traders would be better off being more conservative at this point in time. When the price was trading around $1,000 a lot of people wanted to buy at $400. Then we saw ETH/USD decline to $400 and it kept declining lower. When it reached $155 again, a lot of people wanted to buy and now it is at $128 and there aren’t enough buyers to push it higher. The point is, investors and traders keeping making their peace with lower levels as the market declines in a slow bleed manner. This has happened before and it will continue to happen again until most of the overly optimistic bulls give up and the smart money accumulates dirt cheap and pumps it higher again to begin another bullish cycle.

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