Ethereum At A Strong Resistance Zone

Feb 2, 2020 at 3:57 PM
Ethereum (ETH) has run into a key resistance at $190.52 which is not likely to be broken any time soon. The bullish momentum is now lost, paving the way for a sharp decline up ahead. The RSI is at 69.35 signalling there may be room for the price to trade sideways for a while before the next potential downtrend kicks in. 

The daily chart for ETH/USD shows that the MACD may be about to flip bearish. As always, we would want to wait for confirmation but it appears that the trend is ready to reverse soon. The altcoin market risks to lose a lot if the market does not go up from here and that is something all retail bulls need to keep in mind. If the price does not moon before the next halving then it is going down and hard because it would be the perfect bull trap one that the whales and market makers would eagerly capitalize on. 

ETH/USD risks falling to a double digit price if it declines below the 200-day moving average once again. All of this is likely to happen in 2020. We could expect the first stage of decline before the halving and the next after because I expect another trap after the Bitcoin halving. Conditions are ripe for the market to begin its next downtrend. Next week is going to be critical in this regard as we would have to wait and see which way the stock market flips to ascertain what could happen next in this market. 
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