Ethereum (ETH) is on the verge of another major decline as the price fails to break out of the bearish pennant it has been trading in since the beginning of the year. However, the way the Stochastic RSI has cooled off on the daily chart for ETH/USD hints that we might see a false break out that could see the price revisit the 200 day exponential moving average and possibly break slightly above it to mislead traders into thinking the price has broken past a critical resistance. However, it will most likely close below the 200 day EMA leaving a long wick to the upside. This happened back in October, 2018 before a major decline. The price rallied above the 21 day EMA and left a long wick to the upside when it ended up closing below the 21 day EMA after the fake out.
As long as Ethereum (ETH) trades between $100 and $200, we are going to see a lot of such fake outs and shake outs. This is the ideal range for market makers to profit off wannabe traders who are looking to hit it big on…
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