The Price of ETH Seems Conclusively Bearish
Within the previous week, ETH experienced a huge upsurge that led to a 20 percent gain, based on price data from Coin360. That is, its performance was greater than for BTC which was able to gain 9 percent within the period.
However, the performance of ETH was not as great as some other altcoins that saw huge parabolic rallies within a few days. BSV was able to gain close to 250 percent at the zenith of the rally this week, ETC secured 100 percent gains in a few days, and ZCash more than doubled.
Despite the outstandingly remarkable performance of ETH right now, analysts worry about the immediate direction of the cryptocurrency.
According to a crypto trader known as Calmly in recent times, there are distinct signs of topping in the short term on the 2-hour chart of ETH. He explained himself as follows:
— Calmly | full-time trader (@im_calmly) January 17, 2020
It is absolutely clear from his chart that ETH is showing a distinct swing failure candle, rejecting from $175. He concluded that ETH may retrace to the downside by 10 percent or so to $150 from the prices at the moment.
Despite the frightening look of the crypto’s chart in the short term, the price action of ETH is majorly reliant on Bitcoin.
An interesting thing is the stance of analysts concerning the direction of Bitcoin in the medium term. They are saying it looks bullish. In recent times, Murad Mahmudov commented on the performance of Bitcoin on Twitter:
bears are deluded at best, dishonest at worst pic.twitter.com/mHedoqmSwL
— Murad Mahmudov 🚀 (@MustStopMurad) January 14, 2020
He drew attention to the chart above showing the crossing of Bitcoin over some major moving averages (128-day SMA, 200-day EMA, 50-week SMA, and 100-week SMA).
Likewise, the Lucid Stop and Reversal indicator has just shown an intensely bullish signal. The first time the indicator revealed its buy signal was in March 2019, and before then there was a 330 percent rally that took the price of Bitcoin to over $10k and Ethereum surged to the upside by dozens of percent.