FxWirePro: Snap ETH/USD rallies on whipsaws and flurry of bearish streaks as ethereum loses grounds to bitcoin
After back-to-back hanging man formations, ETHUSD price remains constantly below 7EMA levels (refer weekly chart), while both leading and lagging indicators signal strength and trend continuation in the bearish swings, for now, we could foresee more slumps on bearish EMA & MACD crossovers.
Ethereum appears nothing like before, began a true bear market by returning to the lowest levels since the fall of 2017, after rising to above $1,300 and tumbling to almost $400. ETH has also lost considerably since its highs of BTC prices last summer, down 50% from 0.15 BTC to 0.073 BTC.
While Bitcoin’s price continuing its 2018 decline into the summer, it now rests at or near the $6,000 mark. The regulatory framework in the crypto avenue has been lingering from a long time ago, from the SEC deciding Ethereum is not a security to how it goes after ICOs, it’s a legal grey area that will take many months (and years) to resolve. Market manipulation, tech entrepreneurs getting into Bitcoin early, and the impact Bitcoin futures had on the market, it would take a lot to see a huge rebound in Bitcoin in 2018.
Ethereum currently has a block time of 10-20 seconds. This is thirty times slower than EOS. It also manages 15 transactions per second (TPS), nowhere near enough to be used by gaming platforms. The popular Ethereum Dapp Cryptokitties caused the network to struggle when it was launched as the network could not handle the load.
ETHUSD forms whipsaws that’s been hovering at 7EMAs after brief bullish rallies, occurrences of shooting star and hanging man patterns indicate weakness in this pair, while both leading indicators signal price slumps (refer 4H chart).
Hence, it is wise to snap abrupt rallies and deploy shorts for further bearish targets upto $421.50 levels.
Currency Strength Index: FxWirePro’s hourly BTC spot index is inching towards 107 levels (which is bullish), while hourly USD spot index was at -87 (bullish) while articulating (at 09:20 GMT). For more details on the index, please refer below weblink:
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