Bitcoin’s upcoming halving is working like a domino effect to the altcoins. BTCUSD recently flew passed $10,000, only to drop back below $8,700 levels within two days. The same happened with Ethereum. After surging well past $210, shattering the near term resistances, ETHUSD is back at $187.89 now.
It is as if the crypto investors are cynical about the rise post the Bitcoin halving. And that is justified. The impact of the Coronavirus pandemic is not yet fully understood. Some people claim that with many countries lifting their lockdowns, a second wave of the virus infection might occur. In the time of crisis, investors cannot afford to put in investments in risky instruments such as BTC or ETH.
Technical indicators point towards a decline for ETHUSD
Here’s the ETHUSD daily chart. Source: TradingView.com
The day’s range is $186.98 — $191.20.
The technicals indicate that a short burst of momentum could push Ethereum prices past $200. This short burst is possible considering the upcoming halving. However, the descending trendline suggests ETHUSD could rebound to much lower levels once it touches $200.
The first fallback zone for Ethereum lies between $170 – $179. If this support zone breaks, the decline could be till below the $140 level.
Is there a chance for the revival of ETHUSD?
Conversely, if ETHUSD breaks out of the trendline, and the bulls continue to stay, Ethereum could touch $245. But investors need to be patient enough to catch hold of the jump. One should wait till ETHUSD breaks out of this trendline with a considerably large volume. That is when ETH would be bullish.
