ETHEREUM MEETING RESISTANCE IN DOWNTREND - SHORT IT
Ethereum has dropped quite a bit recently. It has rebounded off the trend line but has struck resistance at 231. The technicals are pointing down with RSI, ROC and MACD all heading down. The inventer of ethereum has proposed a software patch from bitcoin cash to speed up ethereum processing. I think this is a desperate attempt to fix ethereum. Also, Binance has evidently stopped trading some ethereum pairs and the US government hearings has thrown skepticism on Facebook's Libra and the safety of users money. I think bitcoin and ethereum are going to tank and visit their lows once again. Nouriel Roubini has been giving a spray to cryptocurrencies recently also. I think cryptocurrencies have a place in the world but at much lower prices. Cryptocurrencies are illegal in China but legal in Europe and the USA. With VISA and Mastercard and fiat currencies so entrenched in common day use, I can't see crytocurrencies taking off from here, can you?
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Ethereum is in a flag trading pattern between 235 and 190. You could short it now with a stop at 235. I still think it's going to tank down to less than 100. I think Cryptocurrencies are going to tank with the coming stock market correction. All assets are overvalued and hopefully will correct downwards to more reasonable values.Trade closed manually
I have closed my shorts on Ethereum. Ether is stabilizing and the technical picture is starting to look bullish. Bitcoin has turned around and is also starting to look bullish. I have changed my trade and am now long ether. I think smart contracts have a future. With the stock market looking weak and bearish, I'm now thinking a Bitcoin and Ether rally could occur during this turmoil. The Facebook Libra concept has settled down now. Ether may spring upwards off the lower trendline and head higher. Go long with a close stop for protection.
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