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Ethereum's bear market to extend further token breaches major pattern

2018 was a year to forget for the virtual asset industry. Most of the assets were impacted by crypto winter which had prevailed after the bullish run in late 2017. In light of that situation, 2019 has been a positive year for digital currencies.

The community suggested that the bearish momentum would pass and the bulls would take over again. However, the trend patterns indicated something else entirely.

Source: Trading View

According to the aforementioned chart, since 26th November 2018, Ethereum had consistently followed an ascending channel over the last eight months with progressively sustained growth over the time period. The price continued to rise until the breakout prevailed on the 15th of July.

The pattern breach which was also a long-term pattern of collapse for the token of one possible scenario in the near future. Ethereum's long support line was drawn at $ 82.07, which has not been breached by the token since 1st May 2017.

Moving Average indicator

Source: Trading View

Another indicator which weighted this argument was the moving average. In the above chart, a comparison has been drawn between the MA, 50 and the MA, 100. Since mid-2017, it can be observed that 50-MA was threading above the 100-MA in the chart which indicated that the token was significantly bullish during that period of time. However, at press time, a crossover had surfaced in mid-April [incidently the same period when the bullish run surfaced], which saw the MA-100 hover over the MA-50 suggesting that a long-term bearish run had begun for the token.

Conclusion

The long term patterns look completely in favor of bears for Ethereum.

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