DETH Cross Spells More Pain Ahead For Ethereum

Fibo Quantum

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 1
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.”

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.

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