Ethereum (ETH) has declined in the descending channel and has now closed below the 38.2% fiber fraction level in the 4H time frame. This is a major bearish trend which suggests that further disadvantages may soon follow. Most professional traders are aware of what is happening at this time, but they may want to see a bounce to the upside for better listings for short sales. That being said, I do not expect ETH / USD to get relief anytime soon. It is very likely that it will drop to the $ 185 mark around the 61.8% fib extension level to find temporary support before rallying to the top of the descending channel again. Eventually, it is very likely that it will fall below $ 80 to find the true bottom.
Like most other altcoins, Ethereum (ETH) dances to the Bitcoin (BTC) tune, but it has made some moves of its own recently. It has come to an end now, and lately we have seen the price fall much more aggressively than Bitcoin (BTC). Whether this trend remains intact or not remains to be seen, but there is no denying that Ethereum (ETH) made many big moves against Bitcoin (BTC), and now it is time for some correction. The price has fallen within the falling channel against the US dollar, but now it is time for it to also adjust in the same way against Bitcoin (BTC). Not to forget, many useless ICOs were built on the Ethereum (ETH) blockchain, and when the saying hits the fan, as it will in the months ahead, someone will come knocking on the door of Ethereum (ETH) and you will not have Ethereum (ETH) when that happens.
Some investors and cryptocurrency enthusiasts do not like it when we talk about mitigating risk. They will continue to talk about how Ethereum (ETH) is a fantastic invention and what it will be worth in five or ten years from now. Well, we don't know what's going to happen in five or ten years with Ethereum (ETH). As traders, we are more interested in what is happening now. Although we were aware that Ethereum (ETH) will become a widely used blockchain in five years from now, we as investors will still want to maximize our return by selling high and buying low.
The daily chart for ETH / BTC shows us that the pair is ready to decline within the falling channel. This is similar to what Ethereum (ETH) did to the US dollar except it had a false outbreak in the case. In the case of Ethereum (ETH) against Bitcoin (BTC), we saw a 38.2% fib retracement level rebound and that was the end of it. The price began to fall from there and will probably see the bottom of the current sinking channel in the weeks and months ahead.