While Ethereum is trading at $181, traders remain bearish on the second biggest currency but some reckon it will surge after an upcoming drop
Ethereum, the second most popular crypto coin, created by Vitalik Buterin, is sitting at $181 at the time of writing. Since ETH fell from $184 to $112 on March 13 along with the Bitcoin price crash, it has just about managed to recover its previous high.
However, traders say they can see a bearish divergence on the ETH/USD graph at the moment and are expecting the coin to decline. Still, one of them believes this decline will likely be followed by a bullish reversal.
‘Bearish divergence identified’
A twitter user going by the name of ‘JOKER’ has tweeted that he has detected a bearish divergence on the ETH/USD chart.
“ETHUSD chart, a #bearish divergence is identified. The RSI formed lower highs as #ETH pumps further. Consider a bearish divergence as a party comes to an end, the DJ is leaving, food is stall, drinks are gone, ppl are leaving ….”
@TraderEscobar says that every bounce ETH has been making seems weaker than the one before. There is no sign, the trader elaborates, that the crypto pair ETH/USD has broken out of the major downtrend.
The nearest long position he considers is $40-50 by EOY.
“ETH/USD 1W TF. As is evident, every bounce is getting weaker. Nothing about this structure to suggest we have broken macro downtrend. I believe we will range for some time, we can make money shorting and longing but my long term Ethereum target is $40-$50 by EOY.”
‘We can expect up move to $195’
‘ArShevelev’ has posted his analysis on TradingView. The trader believes that ETH is going to decline to $175-$176 and then surge into the $195 area.
“Price action near previous resistance at 176 and will take another try to break it. While we see more bullish setups on the crypto-market, we can expect up move to $195 or close to it.”
Crypto whale moves 45,000 ETH
As is clear from data by Glassnode, a short while ago, a crypto whale was spotted moving 45,000 Ether from the South-Korea-based Bithumb crypto exchange. This amount totals $8,272,501. The name of the holder or the destination of this transfer is unknown, since the ETH was moved to an anonymous wallet.