ethereum bears

DETH Cross Spells More Pain Ahead For Ethereum

As crypto markets begin to cool off again and Bitcoin resumes its consolidation, the world’s second largest digital asset faces a gloomy short term outlook. Technical indicators are forming increasingly bearish patterns for Ethereum and a death cross is imminent.

Ethereum Bearish Below $200

Crypto markets are largely in the red today following a positive start to the week. Bitcoin has retreated from its resistance level around $10,400 and is in danger of dipping back into four figures again. The daily reversal of momentum has pulled the altcoins back into the digital abyss as usual and Ethereum is looking weaker by the day.

ETH has retreated around 3.5% on the day in a fall from over $190 back down to $186 where it currently trades according to Tradingview.com. On the week Ethereum has dumped 6% from just below $200 this time last Tuesday and it does not look like recovering anytime soon.

DETH Cross Spells More Pain Ahead For Ethereum 16
ETH prices, daily chart – Tradingview.com

The daily chart paints a grimmer picture as a death cross is about to form. This bearish trend indicator occurs when a shorter term moving average, usually a 50 day, crosses below the longer term MA, usually the 200 day.

The technical turmoil has not gone unnoticed among analysts who have concluded that price needs to be back above $200 by September 1 to avoid the cross.

“#ETH SMA death cross incoming, price needs to be above $200 by Sept 1 to avoid it. Death cross already confirmed on EMA. Low 2 was lower in price than Low 1 but not lower in RSI which indicates a possible reversal. Weekly chart showing support at $180.”

https://twitter.com/Etherdamus/status/1166220557001474053

Support also lies at $150 then all the way down to $130 where Ethereum will start dying a slow death in terms of price. Gains in 2019 are slowly being eroded and currently stand at around 37 percent. Since the yearly peak of over $350 in late June, Ethereum has dumped almost 50 percent.

Solid Fundamentals

Fundamentally the network is still looking strong and development and improvements are constantly flowing, albeit at a slightly slower pace than originally anticipated. The primary issue for many at the moment is Ethereum’s failure to deliver in terms of scaling.

The project is scheduled to make two major network updates in the next six months, with the first of these in October. The Istanbul hard fork will complete the Metropolis stage of Ethereum development and bring in a number of scaling and performance improvements.

The Serenity update, scheduled to begin in January, will launch a new blockchain with new features such as sharding and the long awaited proof-of-stake consensus. Ethereum still has a long way to go and at the moment markets appear to be mirroring Bitcoin’s big bear market of 2014-15. There is a brighter future for Ethereum, but it may take some time to get there.