Ethereum’s latest value motion is giving bears the braveness to come out of hiding. After all, the No. 2 cryptocurrency is down by over 52 p.c from the 2019 peak of $363.30. Some merchants are even proclaiming that Ethereum might be “dead money for years.”
In my opinion, Ethereum is a busted bubble with large overhead resistance.
For merchants with no exit plan, this may in all probability be useless cash for years. pic.twitter.com/W8NqY5gZsM
— Danny Merkel (@ChartingTrends) August 29, 2019
While we wouldn’t go so far as saying that the altcoin is useless, we concern that the worst of this spherical of correction shouldn’t be but over. We are seeing a number of alerts that time to extra draw back potential. Our evaluation signifies that Ethereum might dump to $140 at a minimal earlier than it may well bounce.
Bears Have Taken Control of the Cryptocurrency
Bulls began to lose steam in June 2019 after failing to convert $300 resistance into assist. At that time, the market was flashing bearish alerts.
We noticed a big bearish divergence on the each day RSI to point out weakening bullish momentum. On high of that, we noticed a big quantity uptick on June 26. The surge in quantity was a sign of shopping for climax.
With these alerts, bears took management of Ethereum. It appears that they don’t seem to be but completed doing injury.
More Bearish Signals as Ethereum Plunges
Ethereum could also be oversold on the each day RSI, however opening a recent lengthy at present ranges is probably not a smart funding determination. We are seeing the cryptocurrency flail bearish readings indicating development reversal shouldn’t be but in sight.
A take a look at the each day chart reveals two bearish breakdowns. The first signal of bearish momentum was the breach for the uptrend line or diagonal assist. Bulls tried to reclaim it twice in July and August however they had been swiftly rejected.
On high of that, bears additionally took out our vary midpoint of $200. Again, bulls tried to get well that stage however their advance was repelled. The rejection led to a waterfall occasion that despatched the cryptocurrency to $164.12 on August 29.
While the coin is buying and selling close to oversold territory, the upcoming death cross between the 50-day transferring common (MA) and 200-day MA tells us that there could possibly be extra ache forward. The crossover between the 2 MAs is an indication of rising bearish momentum.
Thus, it’s possible that Ethereum will dump to $140 on the very least earlier than it reveals indicators of life. If bulls fail to maintain that stage, we would see the No. 2 cryptocurrency slide all the best way down to $100.
Disclaimer: This article is meant for informational functions solely and shouldn’t be taken as funding recommendation.