Ethereum (ETH) has faced stern rejection at the 200-day exponential moving average and is now on the verge of beginning another downtrend. As we can see on the daily chart, this downtrend is likely to pull the price down to the $100 mark. Before that happens, the $133.83 level will serve as a strong support that ETH/USD will struggle to break. Nevertheless, a downtrend is expected as the price seems to have either topped out or is very close to topping out. Both the RSI and Stoch indicators now signal overbought conditions that might pave the way for further downside in the days and weeks ahead.
The altcoin market has recent rallied hard against Bitcoin (BTC) and we saw Bitcoin dominance decline but it is now at a point of another uptrend. The price of Ethereum (ETH) risks a far deadlier decline if the cryptocurrency market enters another downtrend. Ethereum just like other altcoins has already suffered a lot and is down significantly from its all-time high but that does not mean that things couldn’t get worse. In fact, we have yet to see the altcoin market experience maximum pain. Even if the market does not decline heavily from current levels, we could see a situation where the bear market is extended beyond this year which would starve many altcoin projects that have been struggling for a long time now.
This is certainly nothing to be excited about because we want to see all altcoin projects having the opportunity to succeed and thrive so we can have more innovation in this space. However, it will be helpful in ranking different projects. We will be able to see for ourselves what projects can and what cannot survive in situations like these. The ones that do will either have a bigger war chest or a team dedicated enough to work regardless of market conditions or both which would give us insights into what projects to pick for the next potential bull run.
Ethereum (ETH) risks a deadly decline against Bitcoin (BTC) as well. WE can see on the daily chart for ETH/BTC that it has already run into a key resistance at 0.0188 BTC and is now expected to decline towards the bottom of the symmetrical triangle. This would be a very bearish development for the entire altcoin market especially if the pair ends up breaking below the trend line support and breaks the symmetrical triangle to the downside. As long as ETH/BTC remains below the 200-day moving average, we have no reason to be bullish on the altcoin market.
Author: Jefe Caan