Ethereum’s 7-month-long bullish streak came to an end after it crashed below the 200-day MA at $3,600. With an oncoming death cross, Ethereum is expected to crash to $3,000.
Ethereum is currently trading at high $3400s after gaining about 3% during the past week. The beginning of the week was a disaster as the token crashed below its weekly opening market price just a few hours into the day. However, as the week progressed, the bulls got a better grip on the market, helping ETH stay above its opening market price of $3,400.
ETH looks bullish on the 4-hour chart
On the 4-hour chart, ETH is trading inside a bullish symmetrical triangle. As ETH has not yet completed the pattern, it will keep on rebounding inside the triangle. Once the pattern is complete, the token will break out to the upside. Given that Ethereum follows the conventional breakout from a symmetrical triangle, it will hit $3,770. However, just looking at the smaller timeframe will not give a proper view of Ethereum. As such, let’s look at the longer timeframe.
Ethereum crashes below 200-day MA
Although the 4-hour chart looks bullish, the 1-day chart has a very different story to tell. Ethereum crashed below its bullish streak of setting higher lows after 7 months on the daily chart. Not only did the token lose its bullish outlook, but it also crashed below the 200-day moving average, a significant support level.
With the 50-day moving average closing in on the 200-day MA from above, there is a high chance that a death cross could occur. In the event the death cross occurs, Ethereum will lose all hopes of recovering above the 200-day MA, the only hope that could increase the chances of ETH getting back into the bullish groove.
When the death cross occurs, the price usually drops by a huge margin. So it should fall below $3,000. Fortunately $3,000, a psychological level is a strong support. If the bulls successfully defend this support level, after the death cross occurs, ETH could bounce back easily above the trendline, as there is liquidity here.
