Ethereum (ETH) Risks Losing More Ground Against Bitcoin (BTC)

Ethereum (ETH) Risks Losing More Ground Against Bitcoin (BTC)

Ethereum (ETH) risks losing more ground against Bitcoin (BTC). This has not happened for the first time but we can see on the daily chart for ETH/BTC that since September, 2019 Ethereum (ETH) has been waiting for a big decision. Now, it seems to be at a point where it is ready to make that decision and decline below the symmetrical triangle. The reason we expect a decline to the downside is because the price has failed to break effectively past the 200-day moving average. It is still trading above the 200-day moving average but we are seeing a loss of momentum as the pair has run into a key horizontal resistance around the 2,018,197 satoshi level.

The most probable scenario now is for the price to begin its downtrend from here towards the bottom of the symmetrical triangle. We will have to wait and see how it reacts to the trend line support. If ETH/BTC breaks below the trend line support to fall below the symmetrical triangle, that will be our cue to expect significant further downside in the weeks and months to come. This is why it is important to remain focused on the big picture and not to be carried away by a temporary break past that 200-day moving average. We need to see an effective break, one of consequence that is followed by follow through. Pumps like these have failed in the past and there is no reason to expect anything different this time. 


The daily chart for ETH/USD presents an even more gloomy picture for Ethereum (ETH) as we can see that the last time the price declined below the 200-day moving average after a failed attempt to break out, it led to a brutal downtrend that saw the price decline to new lows. The same is expected this time if ETH/USD slides below the 200-day moving average once again. 

The difference this time is that many people know what could happen if the price declines below the 200-day moving average again. So, they may get out of the market a lot more quickly and knowing this, the big players would want to crash the market a lot more quickly than before. This is why all this could happen quite aggressively which means that there is no reason to be bullish on the market at this point. Even holding on to coins is risky because they could soon lose more than 20% in value from current levels before the opportunity to sell. 

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