Ethereum (ETH) Gains Ground Against Bitcoin (BTC) But Upside Remains Limited 

Ethereum (ETH) has gained some ground against Bitcoin (BTC) which was long overdue after weeks of downside. However, we can see on the daily chart for ETH/BTC chart that the pair is about to run into the 50-day moving average which will not be easy to effectively breach. The symmetrical triangle that the pair is trading in will soon be broken and it appears that it will be broken to the downside considering the price has been falling when it entered the symmetrical triangle. Furthermore, the RSI and Stoch indicators indicate the pair has run its course for now and a decline is more likely unless we have a clear break above the 0.0197 BTC level. 

The near-term outlook for altcoins seems promising at the moment as most coins are moving up against Bitcoin (BTC). However, this could be short-lived as there is not much room to rally. Once Bitcoin (BTC) starts to decline after completing the ongoing move, altcoins are going to crash harder once again. So, while it may not be a bad idea to look for any bullish opportunities on altcoin pairs near-term, it is important not to get too comfortable because things may be about to change very quickly. Ethereum (ETH) like other altcoins stands to lose the most during a downtrend especially when we are expecting a decline below $3,000 in Bitcoin (BTC) during the next downtrend. 

The daily chart for ETH/USD shows the price in a clear downtrend. Although it has made an attempt to test the top of the descending channel once again in the middle of a downtrend, it will be of little consequence until we have a clear break past the 50-day exponential moving average. At the moment, there is nothing much to look forward to under the bullish case. Under the bearish case however there is a lot to look forward to. In fact, not only can we expect a decline down to the previous low of $80 this year, we can expect Ethereum (ETH) to decline much harder. 

If Bitcoin (BTC) goes below $3,000 Ethereum (ETH) will be in serious trouble. We have seen in the past that such developments in the market coincide with negative news and events most of the time. We might see hacks, bankruptcies and more so investors should stay prepared because it is likely to be a brutal few months ahead. Ethereum (ETH) does not always have to be the second largest coin by market cap. It is important to realize that other coins have held that spot in the past. The point is, there is no reason to hold on to something hoping that it will recover long term. Even if it does, there may be better opportunities around during the next bullish cycle and there is no reason to be holding on to a losing investment when you can buy at much lower prices when there is blood on the streets.