Ethereum is the second-largest cryptocurrency when ranked by its market capitalization. It made headlines on Monday when its co-founder was spotted in the company of several Chinese investors and internet moguls. This could have been the reason for a nearly 10 percent increase in the price of the altcoin.<\/p>\n
However, despite this price spike, Ethereum has been on a downward trend for the prior 110 days.<\/p>\n
Crypto trader @smartcontracter pointed out that the Ethereum four-hour chart looks bearish while outlining a possible downward path for the price.<\/p>\n
According to him, the price is ready to make a downward move towards $170.<\/p>\n
While the short-term wave count seems correct, we want to look at the longer-term price action to decide the Ethereum price outlook and find a target for the end of the downward move.<\/p>\n
Looking at the price movement since Ethereum reached a low of $83 on December 7, 2018, we believe the ETH price has finished a five-wave upward move when it reached a high of $363 on June 26, 2019.<\/p>\n<\/p>\n
Since then, the Ethereum price has been trading inside of a descending wedge. The descending wedge is a bullish pattern, making a price breakout more likely. While inside its confines, ETH has either finished the final corrective C-wave or is very close to doing so.<\/p>\n
However, it is also right at the resistance line of the pattern. Therefore, even though the wedge is a bullish pattern, we could definitely see an extension of the downward leg towards the support area if the price does not break out immediately.<\/p>\n
When we look at the daily moving averages (MAs), the possibility of a breakout is greatly reduced.<\/p>\n
The 100- and 200-day MAs have just made a bearish cross and are providing close resistance to the price.<\/p>\n<\/p>\n
A bullish cross between the two MAs occurred in May and preceded an increase of more than 100 percent.<\/p>\n
The current bearish cross could very well be a precursor to a similar decrease. However, due to the support area outlined near $160 and the projected end of the wedge, we do not believe this decrease will have the same magnitude.<\/p>\n
Looking at the four-hour chart to which @smartcontracter alluded to, we can see a short-term ascending support line. Combining it with the descending resistance line from the wedge, we get a symmetrical triangle which is projected to end in two days.<\/p>\n<\/p>\n
A decisive move should occur by that time.<\/p>\n
Based on our long-term analysis, we agree with the statement made by @smartcontracter that the price is likely to initiate a downward move.<\/p>\n
Do you think Ethereum will break out or will it decrease towards the support area? Let us know in the comments below.<\/p>\n
[Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.]<\/p>\n
Images courtesy of Twitter, TradingView.<\/p>\n
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Ethereums Bearish Wave Count Outlined by Cryptocurrency Analyst - BeInCrypto<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Ethereum is the second-largest cryptocurrency when ranked by its market capitalization. It made headlines on Monday when its co-founder was spotted in the company of several Chinese investors and internet moguls Continue reading