Ethereum / Breaking News / Bitcoin / Analytics
Ethereum (ETH) remains in a large descending channel. It resisted to decline towards the bottom of this channel after it tested the top recently and has now run into the top again. The price is now at a point where some traders would expect it to break a long term descending channel while others would expect it to decline towards the bottom of this descending channel. The 4H chart shows that ETH/USD may trade sideways for a while but sooner or later it will make that decision. After the recent pump, I expect the price to begin its downtrend. However, I would not discount another pump short term. That being said, I do not expect it to have any follow through. I do not think ETH/USD is ready to break the descending channel at this point.
The market has now reversed most of the moves made on the weekend and it is back where it was on Friday ready to make a decisive move. Retail traders are getting bullish once again after the recent moves that saw the price rally once again. However, I would be very cautious here because being bullish at this point means expecting the price to break the descending channel. If that is the case, then you might want to at least wait for that to happen because that is not something that happens all the time. The odds of it not happening are much higher than the odds of it happening. Therefore, it is not worth the risk/reward to be bullish at this point just to catch that potential break out of the descending channel if we actually see one.