Home Ethereum Looming ‘Death Cross’ May Send Ethereum Plunging to $140

Looming ‘Death Cross’ May Send Ethereum Plunging to $140

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Ethereum’s current 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 shall be “dead money for years.”

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 could dump to $140 at a minimal earlier than it might 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 every day RSI to point out weakening bullish momentum. On prime of that, we noticed a major quantity uptick on June 26. The surge in quantity was a sign of shopping for climax.

An image of bullish exhaustion | Source: TradingView

With these alerts, bears took management of Ethereum. It appears that they don’t seem to be but achieved doing harm.

More Bearish Signals as Ethereum Plunges

Ethereum could also be oversold on the every day RSI, however opening a recent lengthy at present ranges will not be a sensible funding choice. We are seeing the cryptocurrency flail bearish readings indicating {that a} pattern reversal shouldn’t be but in sight.

One bearish breakdown after one other for Ethereum | Source: TradingView

A have a look at the every 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 have been swiftly rejected.

On prime of that, bears additionally took out our vary midpoint of $200. Again, bulls tried to get better 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 approaching loss of life cross between the 50-day transferring common (MA) and 200-day MA tells us that there may very well be extra ache forward. The crossover between the 2 MAs is an indication of rising bearish momentum.

Thus, it’s doubtless 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’d 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.

Last modified: September 2, 2019 4:52 PM UTC

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