Ethereum’s price action at the beginning of this year was looking bullish and technicals suggested that the price could surpass 200 USD by the time of Constantinople hard fork. But, soon after hitting resistance at 160 USD, the bears took over and dragged the price down towards 120 USD.
The discovery of a security vulnerability at the time of hard fork has made the situation worse, as it further dragged price downwards from some recovery yesterday.
As seen in the Ichimoku Cloud in the 4-hour period, there is a thick red cloud ahead, which is not a good sign, especially during the ongoing bearish price action. The price must get above the cloud to be termed as bullish but the short term probability of this seems low.
Bearish divergence on the accumulation/distribution indicator is seen on 1 D chart, which is again very bearish.
The price of Ethereum has crashed below its 21 and 55 Exponential Moving Averages on the 1 D chart. As long as price remains under these averages, it is bearish.
If the price breaks further down, we can expect it to hit the critical support zone between 95-105 USD prices. If there is a break below this level with sharp selling volume, it will be a short term death spell which will push the price much below.
Verdict: Short term bearish, long term neutral
Disclaimer by the Author:
This is not investment advice or promotion to ICO or Cryptocurrencies or any other investment in any form. These views are based on Author’s own research and readers must execute caution & suggested to do their own research during any investments.