Ethereum (ETH) has deepened problems for itself the last few days as the price has fallen through a series of supports which have now turned into resistances. The price on the 4H chart for ETH/USD above does not seem likely to break above the near term $202 resistance any time soon. This does not mean though that the price will fall below the support at $191 at this point. It would be very unlikely for that to happen at this point. However, it is expected though that the price will continue to trade sideways for the foreseeable future unless Bitcoin (BTC) begins a new cycle.
We have seen that some cryptocurrencies have already begun new trends against both Bitcoin (BTC) and the US Dollar (USD). However, the last few days have proved that Ethereum (ETH) will not be one of those coins. RSI for the above chart demonstrates the sideways movement that we mentioned before. It is likely to extend all the way to mid September. ADX and DI indicator on the above chart also shows that the price does not have any intentions of a reversal at this point but if it were to happen, the most likely scenario will be that the price will rise all the way to the $226 resistance and then continue to struggle to break past it.
Ethereum (ETH) presents a bullish picture this time on the Bitcoin (BTC) front as shown by the daily ETH/BTC chart above. As mentioned in one of our previous analyses, Ethereum (ETH) had to complete one last wave against Bitcoin (BTC) in the falling wedge. It has finally one that and now the price can be expected to rise even if it runs into the downtrend resistance again. ADX and DI analysis for the above chart point to an imminent trend reversal in favor of the bulls.
As mentioned in our analyses before, the time frame for this trend reversal is mid September to end of October at the latest. The price may first fall below the falling wedge before it climbs back up as the low volume makes manipulation easier. Long term, the prospects for Ethereum (ETH) may not be as bright as once anticipated but that does not mean Ethereum (ETH) is not going to new highs. The price has lost more than one fifth its values from the previous all time high but has yet to show solid signs of a reversal. The major players in the industry have already signaled favorable developments for Ethereum (ETH) ahead in the form of more funds and futures. However, the internal state of affairs within the Ethereum (ETH) community is what has lowered the appeal of Ethereum (ETH) as an investment. It may still be a wonderful project and might gain mass adoption but from an investment point of view, Ethereum (ETH) is not as lucrative as before, not when competitors like Ethereum Classic (ETC) can do what Ethereum (ETH) can and more: a fixed supply, an immutable blockchain and independent governance.
