Digital Currency Revolution Series: ETH/USD Shooting Stars Signifies Minor Downtrend, But Upside Sentiments Remain Intact

ETHUSD (at Coinbase) minor trend travels through sloping channel, the prevailing price slumps slide the current trend below DMAs upon sharp shooting star candle at channel resistance (at 180.03 levels to be precise), since then the bears have held firmly and finally managed nudge below DMAs (refer daily chart).

On a broader perspective, this year, ether has shown a considerable price consolidation phase after bearish rout seen in 2018, rallies of more than 340% in 2019 so far. 

Shooting star is traced out at 290.07 levels (on weekly chart as well), to counter this vigorous rally and hampers intermediate uptrend. Consequently, the bearish pattern nudge price back below EMAs.

The intermediate uptrend seems to be restrained below 21-EMAs. Bulls may have upside traction only if they manage to break out these levels. But for now, we could foresee more downside traction up to 130 levels in the short-run.

But bounce back may also possible in next 2-3 months, or even up to 360 by first quarter of 2020. Hence, the recent price dips upon shooting star are perceived as the better entry level for fresh long build-ups for the long-term investors.

Fundamentally, we witness some constructive opinions flowing in favour of ether, the new Chair of the CFTC (Commodity Futures Trading Commission) has recently said that Ether (ETH) is a commodity – hinting the room for a plethora of newly regulated derivatives products on platforms like the CBOE. There have been news of ETHUSD Futures.

CFTC Chairman Heath Tarbert, at Yahoo Finance’s All Markets Summit in New York, said “it is my view as chairman of the CFTC that ether is a commodity.”