Ethereum: weekly market analysis (from December 25th to December 31st 2019 on BTC / ETH pair)
Warning: the word is spreading on social media that Parity, the main ethereum client, is facing some synchronization problems, news that has not been exactly welcomed in a positive way by the market, so much so that the price has taken a bad slide, even if at this moment he seems to want to recover.
We must therefore try to understand how the situation will evolve in the coming weeks and months, especially by virtue of the fact that ethereum has entered a very delicate phase of its history, which will have to lead to the abandonment of the POW consensus protocol in favor of a protocol POS; so let's immediately take a look at the charts and try to understand together what the new year has in store for those who have invested in ethereum.
BTC / ETH is stormy on the markets
We start as always from the 30D chart and, as anticipated last week, the first thing we notice is that the bulls have tried to bring the price close to the pivot point, for now, however, with lackluster results, despite the huge green candle of last Sunday; the monthly chart of ethereum, as we have reported months ago, is truly terrifying and the feeling is that the price is heading towards the minimum reached in June 2016, in the 0.0078BTC zone, and if this support should also be broken it will be violent and painful since from there down there is only the historical minimum, reached in November 2015 in the 0.0011BTC zone.
Things are even worse if we stop to look at the weekly chart; bearish parabolic SAR, MACD that seems to be bearish by now, free-falling volumes that return to growth only in conjunction with the price drop, prices stably under the ichimoku clouds since July 2018, everything we see on the graph appears fiercely bearish.
The situation does not improve even on 1D time frame, where there also seem to be extremes for some further small increase but from which we derive the feeling, quite strong, that when the current retracement runs out the price will only slide further down , going to mark a new low.
Weekly forecast
Although many on social networks are trying to keep up the morale, assuming for Ethereum a bull run in the first months of 2020, what we see on the charts is seriously disturbing; to avoid misunderstandings, we clearly specify that technical analysis is not only not an exact science but it also depends a lot on who does the analysis, so maybe I'm the one who is wrong to read and I'm excessively pessimistic regarding the future of Ethereum.
It remains however that at this moment I consider it impossible not to be bearish on Ethereum, regardless of factors such as sentiment, which is also important, or from the transition to what everyone has become accustomed to calling Ethereum 2.0, I fear that with charts so hard this money can attract liquidity in the short term.
It is better, therefore, to arm yourself with patience and wait for a clear reversal signal, avoiding to take risks and keeping our liquidity for when better times will come.
Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but it is purely educational
