Ethereum (ETH) Remains A Sell Below $233, Price Continues To Be Vulnerable  

Ethereum (ETH) remains a sell below $233 as the price has repeatedly failed to garner the strength to break past this important resistance level. So far, the probability of a rally towards a new yearly high remains very low but if ETH/USD breaks this resistance then that it exactly what we would expect it to do. For now, the RSI remains in a downtrend and so does the price. The MACD is about to see a bearish crossover which means that the price could sharply decline towards the 38.2% fib level in the near future. Ethereum (ETH) and other altcoins always decline more aggressively when the price of Bitcoin (BTC) declines. This time, the altcoin market risks an even bigger decline. 

This is something we have been discussing since the beginning of the year. In 2016, Bitcoin dominance (BTC.D) started to decline. That is when we saw the rise of Ethereum (ETH) and the thousands of ICOs. No matter how useless a token, it rallied and it rallied hard as Bitcoin rallied. This continued for a while and then came to an end in 2018. During periods of bullish uptrends in between the declines, there have been times when altcoins rallied but by that time investors had become more risk averse. The same trend seems to be continuing and investors seem to be very careful now about what kind of altcoins to back. Gradually, this trend is helping Bitcoin dominance (BTC.D) reverse. If that happens this time, we could expect most of this altcoin frenzy to reverse. 

This is a chart that is being portrayed as a bullish development for Ethereum (ETH). Indeed, if ETH/BTC breaks out of the symmetrical triangle and begins a new uptrend, this would be the continuation of the altcoin frenzy and all of this would indeed be bullish for altcoins. However, that does not seem to be the case when we look at the big picture. The cryptocurrency market itself as well as the major markets it relies on are not ready for this. 

There is no denying that ETH/BTC could end up shooting past the symmetrical triangle to make a big bullish candle to the upside. However, until and unless there is follow through, it will be a false signal. The big picture suggests that there is a very low probability of Ethereum (ETH) actually entering a new uptrend against Bitcoin at this point. The most probable scenario is that both Bitcoin and Ethereum will decline with Ethereum (ETH) declining much harder leading to ETH/BTC losing ground below the symmetrical triangle.