Ethereum (ETH) Holds Its Ground But Threats Loom Over 

Ethereum (ETH) Holds Its Ground But Threats Loom Over 

Ethereum (ETH) has been holding its ground firmly above the trend line support but there is still the risk of a decline below the ascending triangle considering we now have a bearish divergence on the RSI as we can see on the 4H chart for ETH/USD. This is not a favorable development and could mean that Ethereum (ETH) might see once last decline down to the 38.2% fib level below $240 before the next move up. That would happen only if we see the trend line support break which has not happened so far but the bulls seem to be losing momentum. 

The cryptocurrency market is ready to rally further after the recent correction but we still cannot discount the possibility of a decline down to the 200-moving average in BTC/USD which means that such a decline would drag ETH/USD down to the 38.2% fib level. For the market makers and the whales, the big players that control this market, they have to keep the balance between completing the correction and not spooking the horse. The last thing they want to do is shatter the halving dream just yet. They want the market to rally higher before halving and they are going to ensure that it happens. One thing that is important to note that the manner in which the market crashed recently could definitely happen again which is why it is important to understand the risks and manage them accordingly. 

The bearish divergence that we saw on ETH/USD can also be seen on ETH/BTC. Ethereum (ETH) rallied aggressively against Bitcoin (BTC) but it seems to have run out of steam to surge on. If it declines below the trend line support, we could be looking at a sharp decline to the 38.2% fib level. However, it is important to realize that a move like that would seriously hurt the bullish resolve, but it can still happen. 

In case ETH/BTC declines down to the 38.2% fib level, we would want to see it find support there and begin an uptrend instead of falling further down to the 61.8%. The market seems to have lost the bullish momentum after the recent crash but we could still see a pump or two and then everyone would try to FOMO into the market once again. So, it is important to be mindful of all eventualities. If ETH/BTC does not fall below the trend line support, then it could shape up to be a major ascending triangle which would then lead to a major breakout in the days and weeks to come. 

Investment Disclaimer
Related Topics: