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ETH/USD crypto signal - The bearish sentiment engulfed - 19 Mar 2018

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Cryptocurrencies were in for another bout of decline last week. The bearish sentiment engulfed the crypto markets after Google announced a ban on cryptocurrency advertisements. This sent prices of Bitcoin and Ethereum to drift lower as a result.

Following the sharp declines, the cryptocurrencies are expected to continue consolidating lower but at a modest pace. While the sentiment remains bearish for now, the longer term outlook remains that of a bull market.

Thus, the current declines in the cryptocurrencies can be seen as a good opportunity to especially load up for the long term. From a technical perspective, Ethereum's decline is very much in line with the long term correction of prices in the cryptocurrency.

We expect to see further near term declines as Ethereum touches down towards the major support level at 397.96. The technical chart shows price in a bearish trend and declining within the descending price channel.

A breakout from this price channel will of course signal a potential breakout to the upside. For the near term, being in line with the bearish trend, we are looking to short Ethereum at the day's low around 509.00 with stops at the day's high of 558.50. The downside target is set to 397.50 to which we expect Ethereum prices to eventually slip to.

While we expect to see this support hold, it would be ideal to wait for a higher high formation off this support to confirm any longer term bullish outlook.

In the event that Ethereum prices breakdown below 397.50, then we could expect price to eventually touch down to the 331.96 level.

crypto signal ethusd 19 mar 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.