Like Bitcoin and other altcoins, Ethereum has been flirting with collapse over the past few weeks.
After a strong rejection at the $250 resistance, the cryptocurrency has found itself stuck in a consolidation that has seen ETH slide to $228 as of the time of this article’s writing.
Analysts say that this may be a precursor to a larger drop in the price of Ethereum, with a number of bearish technical signs for the cryptocurrency recently being observed.
Ethereum Is Prepared to Retrace, Analysts Say
After rallying nearly 200% from March’s lows, analysts expect for Ethereum to undergo a retracement in the weeks and months ahead.
One analyst shared the chart below with the following comment, which was made in reference to his intent to short the leading cryptocurrency in the coming days:
“This is exactly in line with what Renko tells me with a solid divergence already locked in for $ETH. Tired.”
Bearish Ethereum “Renko” candle chart shared by cryptocurrency trader Cold Blooded Shiller (@ColdBloodShill on Twitter). Chart from TradingView.com
The chart shows that a bearish divergence has formed between Ethereum’s price action on the 12-hour chart and a momentum indicator, suggesting bulls are losing strength.
Adding to the bearish sentiment, history suggests that the asset is on the verge of a six-month correction. As reported by
