Ethereum’s Ether (ETH) price is in a massive sell-off in the face of an increase in Bitcoin dominance and scalability issues on the network.
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According to an August 19 publication on thestar.com, Ethereum co-founder, Vitalik Buterin, stated that the network is close to being filled up. He believes a pluralist future for the cryptocurrency industry and back in July ’19, proposed using the Bitcoin Cash (BCH) network as a temporary scalability solution for the network.
Should we be looking at another wave of bearish outlook similar to the crypto winter of 2018?
Join us as we analyze major technical chart patterns driving the price of the number two alternative crypto by market cap.
ETHUSD Weekly
An overview from the weekly time frame reveals huge bearish sentiment that started from a breakdown of hidden bullish accumulation on July 08 ’19, followed by a double bearish accumulation pattern on July 22 ’19.
With the Relative Strength Index already forming higher lows, and price still higher than the previous trough at $148.88, we expect a hidden bullish divergence for a continuation of the bullish trend.
However, further price decline below the $148.88 support may spell doom for HODLers and increase the bearish outlook.
ETHUSD Daily
The above daily time frame shows the Ether price coming out of the oversold area on July 17 ’19 after established support at $191.00.
Further breakout of bearish accumulation on July 31 hints at an increase in buying power, however, the bears returned the gesture by breaking below hidden bullish accumulation supports on August 09.
A rather recent breach of hidden bearish resistance on August 18 raise the hopes of bulls as they anticipated a price increase. However, the ETH price has closed bearish for two days in a row now, with a breach of the $174.20 support to confirm further price descent.
ETHUSD 4-hour
The 4-hour time frame shows an increase in selling pressure through bearish patterns on August 13 and 14, thereby pushing the Ether price into the oversold area.
Upon exiting the oversold territory on August 15 15:00, which was later confirmed by a breakout of resistance ($189.63) on August 18 03:00, the bulls struggled to restore the ETH price.
Bullish expectations were cut short by a hidden bearish divergence pattern on August 20 15:000 in combination with triple bearish accumulation pattern.
ETHUSD 2-hour
At the intraday level, the 2-hour chart revealed rejection of bearish resistance, first on August 15 03:00, next August 16 03:00, and August 17 17:00.
ETHUSD attained an increase of about 11.26% from the August 15 03:00 bullish breakout.
After exiting the overbought territory and signaling a breakdown of bullish accumulation on August 19 13:00, the bears again doubled on their short orders, which resulted in a regular bearish divergence pattern as the nineteenth hour of August 19. The ETH price declined by roughly 11.79% from the bearish divergence.
Conclusion
At the time of publication, the ETHUSD breaks above the high of the identified bearish engulfing pattern as the cryptocurrency for a blockchain-based virtual machine shows signs of a price recovery.
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