ETH/USD bulls caught in a vicious downward spiral in the hunt for a bottom

  • Ethereum failed to defend $150 support and now is trading sideways around $147.
  • The falling wedge pattern will put a stop the downtrend and support a significant rally above $200.
Fibo Quantum

Ethereum seems to be pushing the search for credible support to otherwise called bottom a bit too far. Following the recovery from December, 2018 low at $80, the price corrected to highs hugging $364 in June, 2019. However, the trend since then has been a vicious cycle where Ether makes one step forward and several backward.

The declines have also been forming a falling wedge pattern, which is a blessing in disguise. On finding the bottom support, ETH/USD is expected to correct significantly upwards. If the wedge resistance is broken, Ethereum could smoothly sail through the rough waters, reclaiming $200, $250 and $300 broken support zones.

In the meantime, Ethereum is locked below $150 and trading at $147. The current trend is sideways and likely to last longer owing to the lethargic technical levels. The MACD is horizontal at -5.20 after correcting from levels above 0.0. The full stochastic oscillator is retreating in the wake of the failure to trend into the overbought zone. The drab technical picture clearly shows the presence of the bears and a lack of enough buying power to break $150 resistance.

ETH/USD 1-hour chart