Ethereum (ETH) Risks A Retest Of Yearly Lows Amid Rising Bearish Momentum

[PRIBO247]

Ethereum (ETH) is at a risk of retesting its previous yearly lows as
the price action looks extremely weak. The bears are too confident
whereas the bulls are completely demoralized when they should
be pushing for a trend reversal after an extended correction. The
RSI for ETH/USD seems to have formed a rudimentary version of a
bullish gartley pattern which could be taken as a sign of temporary
relief. However, the RSI could keep being oversold and the price
may still fall. This is nothing new and as we have seen the past
few weeks, the price can fall straight for hours despite the
technical conditions being against it. Markets seldom act
rationally and therefore it is better to be prepared for all outcomes
instead of just catching a falling knife.

The recent correction seems to have done more damage to
Ethereum (ETH) than most large and medium cap coins. This is
why Ripple (XRP) ended up replacing Ethereum (ETH) as the
second largest coin by market. Currently, that gap has grown past
$3 billion and is unlikely to be bridged anytime soon. Nobody
wants to hold an ICO during a bleeding market but a lot of ICOs
that have raised money through Ethereum (ETH) in the past keep
selling their stash regularly to pay for expenses. It is likely that
most of these ICOs have large bags of Ethereum (ETH) that they
are holding to sell just when the market recovers because they
have learnt that “hodling” might just put them out of business if it
hasn’t already.

Of course in circumstances like these, one man’s misery is
another’s opportunity. Falling Ethereum (ETH) prices have also
reduced mining difficulty. So, while a lot of miners did sell their
equipment the past few months because they could not turn in a
profit, new players are now getting into the game mining more
coins for the same hash power. The best part is that they get to
buy all the mining hardware dirt cheap from people who just gave
up thinking this is it and things will never be the same again. This
could not be further from the truth. In fact, we have seen
throughout history that financial markets repeat similar patterns
over and over again. This is why it becomes so important to learn
from mistakes of the past.

Ethereum (ETH) is currently facing the same dilemma as Bitcoin
(BTC). Will the RSI for ETH/USD on the daily time frame break past
the support turned resistance or not? This should deter the bulls
from entering long positions but this should in no way be taken as
a hint for a sell setup because it might very well be a trap!
Remember, this is the most opportune spot for a reversal. It is
unadvisable to enter a short position at this point no matter how
tempting it may seem. The price of Ethereum (ETH) may drop to
the previous support and retest yearly lows but it is not worth
taking a sell position over, not when the technicals point to a
recovery sooner or later.

Source : http://cryptodaily.co.uk