Ethereum (ETH) has run into a strong resistance and now declined sharply below the $270 mark. This has left a long wick to the upside as the daily candle has now retraced below the 1.272% Fib retracement level. The price is likely to close below this level as it has run into the top of the ascending channel it has been trading in. It would appear that ETH/USD did actually profit a lot off the golden cross that most expected to be a bull trap. The price kept on rallying and pushed through critical resistance levels despite overbought conditions on larger time frames. This time however the price has completely run out of any room it has for further upside. The rejection at top of the ascending channel is testament to the fact that ETH/USD has now run out of steam and the price is likely to drop to the bottom of the channel.
RSI on the daily time frame for ETH/USD is extremely overbought and signals a decline in the price of Ethereum (ETH) in the weeks ahead. The price may not decline in the same manner that it shot up but it is clear that once Ethereum (ETH) declines from current levels to the bottom of the channel, it is more likely to fall further as the price has now formed a large bear flag that could break hard to the downside. This breakout to the downside has been discussed in our previous analyses on Ethereum (ETH) for a long time now. We expect ETH/USD to find its true bottom around $60 or lower levels by the end of the year. Considering how the price shot up during the past few weeks, it is likely that this correction might take even longer as the whales have prolonged the ongoing market cycle.