Ethereum (ETH) Bulls Expect A Bullish Breakout Despite Recent Setbacks 

Ethereum (ETH) bulls are still hoping for a bullish breakout. The falling wedge on the daily chart for Ethereum dominance (ETH.D) is one of the reasons why. The altcoin market has suffered a lot the past few months and many analysts and traders think that this might be the time for it to see a recovery. I am of the opinion that if something is bad it could always go worse so until and unless we have a break out of this falling wedge to the upside indicating the beginning of a new trend, I remain bearish even though the altcoin market is overdue for a short-term recovery. Markets can stay irrational longer than investors can stay solvent and that is something very important to keep in mind because we do not want to bet against the trend here.

The altcoin market as a whole has seen a devastating decline from its all-time high but it could go down further. There is a strong probability of Bitcoin falling down to $5.5k and when that happens, we could expect the altcoin market to go down even harder. It is important to note here that we have not yet seen maximum pain in the altcoin market. There has been a bullish phase in between and a lot of investors are still quite hopeful that their favorite altcoins would reach new all-time highs. The last time we saw the cryptocurrency market capitulate in 2014-15, it did not feel that way and the vast majority of investors thought it was the end. The recent rally saw Bitcoin (BTC) outpace altcoins like Ethereum (ETH) once again which means that now when Bitcoin (BTC) goes back to where it rallied from Ethereum (ETH) would be falling lower than where it had rallied from. 

The daily chart for ETH/USD shows us quite clearly what is actually going on. The price has just run into the top of the descending channel and now eyes further downside within the channel. If the price declines below $133.83 again, we would be looking at a decline down to the $126.89 level and eventually down to the psychological support of $100. 

Whether or not Ethereum (ETH) will take down its December, 2018 low depends on the state of traditional markets in the weeks and months ahead. WTI Crude Oil has recently had a strong impact on a lot of markets including Bitcoin and therefore the cryptocurrency market. The near term outlook of traditional markets indicates that the cryptocurrency market could see a major correction before June 2020, that is before Bitcoin’s upcoming halving.