Ethereum (ETH) runs the risk of repeating previous annual lows as price action seems extremely weak. Bears are too confident, while the bulls are completely demoralized when they should push for a turnaround after an extended correction. The RSI for ETH / USD seems to have formed a rudimentary version of a bullish gartley model that could be taken as a sign of temporary relief. However, the RSI could continue to be oversold and the price could still fall. This is nothing new and, as we have seen in recent weeks, the price can go straight for hours, despite the contrary technical conditions. Markets rarely act rationally so it is better to be prepared for all results instead of taking a falling knife.
The recent correction appears to have caused more damage to the Ethereum (ETH) than most large and mid-cap stocks. That's why Ripple (XRP) ended up replacing Ethereum (ETH) as the second largest coin per market. Currently, this gap has grown over $ 3 billion and is unlikely to be filled anytime soon. No one wants to hold an ICO during a bloody market, but many of the ICOs who raised funds through Ethereum (ETH) in the past continue to sell their stocks regularly to pay for the expenses. Most of these international organizations are likely to have large pockets of Ethereum (ETH) that are negotiating to sell just when the market recovers because they have learned that "hodling" could simply put them off the market if it is not already.
Naturally in circumstances like these, a man's misery is an opportunity for another. Falling Ethereum (ETH) prices have also reduced mining difficulties. So while a lot of miners sold their equipment in the last few months because they could not make profits, new players are now entering the game by extracting more coins for the same hash power. The best part is that they can buy all the cheap mining hardware from people who have just stopped thinking that this is all and that things will never be the same again. This could not be further from the truth. Indeed, we have seen throughout history that financial markets repeat similar patterns over and over again. This is why it becomes so important to learn from the mistakes of the past.
Ethereum (ETH) is currently facing the same Bitcoin dilemma (BTC). The RSI for ETH / USD on the daily time slot will go beyond the support turned into resistance or not? This should discourage bulls from entering long positions, but this should in no way be taken as a suggestion for a sales setup because it could very well be a trap! Remember, this is the most appropriate point for an inversion. It is not advisable to enter a short position at this point, no matter how tempting it may seem. The price of Ethereum (ETH) may fall to the previous support and repeat the annual lows, but it is not worthwhile to assume a sales position, not when the technicians aim for a recovery sooner or later.