Ethereum (ETH) Unlikely To Find Relief Against Bitcoin (BTC) Anytime Soon

Ethereum (ETH) has had a rough few months against Bitcoin but it is not likely to see relief anytime soon. The daily chart shows that ETH/BTC has already begun its downtrend and is now likely to decline to the next fib ring having plunged below the 38.2% fib level at 0.02099.  We can see on the daily chart that there has been a strong resistance at 0.02049 that ETH/BTC has failed to break past.  As long as the berry means below this level there is now bullish case the probability of the price accounting even further is much higher at this point. The next decline could see the pair take out the September 2019 as it loses more ground against Bitcoin. 

 

 

We keep seeing occasional bounces here and there in some altcoins but investors still do not have full-fledged confidence in the altcoin market and as we can see on the ETH/BTC chart the pair has consistently lost ground for the most part in the recent past. If the pair were to test the next fib ring by declining further it would have to decline a lot lower than where it currently is. Such market developments coincide with negative news events most of the time. In the case of Ethereum (ETH), this could be ICOs. Ethereum (ETH) has already lost most of its ground against Bitcoin (BTC) but it is about to lose some more which could put unprecedented pressure on the altcoin market this time. 

 

 

The 4H chart for ETH/USD shows the price in a strong downtrend. We keep seeing a series of lower highs and lower lows as the price declines further. The resistance at $134 is not one to be easily breached. It is quite likely for Ethereum (ETH) to decline to $100 even if Bitcoin (BTC) declines below $7k but stays above $7k. This means that when BTC/USD declines to $6k Etheruem (ETH) might take out its previous low of $80. 

 

If Bitcoin (BTC) ends up declining below $3k as we expect it to, Ethereum (ETH) and the rest of the altcoin market would be in serious trouble. We would see a large number of altcoins go belly up and Ethereum based stable coins would start experiencing all sorts of problems. This is not going to be a good development for the market short-term but it will definitely help a lot long-term because it will get rid of useless projects and help fix inefficiencies as the market moves towards being more mature and orderly.