Ethereum (ETH) has just faced a strong rejection at the top of a rising wedge that it has been trading in since December, 2018. This rising wedge is at a massive risk of being broken to the downside any time now. What follows after the break down will be very quick which is why the whales keep on delaying the decline because the current market cycle has to be longer than the previous one. Even the people who have been manipulating the market for a while now are trying to get more sophisticated to make things appear more reasonable in the grand scheme of things. The daily chart for ETH/USD shows that the price is ready to decline towards the bottom of the rising wedge as early as this week. The RSI also shows a strong bearish divergence and the Aroon indicator also supports a bearish reversal.

The price of Ethereum (ETH) has been massively overbought for a long time now but it could still decline to the bottom of the rising wedge and then continue higher. That being said, it can continue to trade in the wedge but it is highly unlikely to break above it. In fact, the price is expected to decline below it towards the end of this month or the next. Once that happens, the altcoin market will experience maximum pain. This will also be the time when we see most of the useless sh*tcoins on the Ethereum (ETH) blockchain get wiped out of the market. We cannot have a trend reversal without that cleansing. Bitcoin (BTC) is already up significantly against most altcoins. The recent rally in BTC/USD against most altcoins has led to cryptocurrencies like Ethereum (ETH) break critical support levels against Bitcoin (BTC). This means that altcoins could go down a lot deeper when Bitcoin (BTC) starts to fall again.

Ethereum (ETH) shorts have been more affected during the recent frenzy than Bitcoin (BTC) shorts. The daily chart for ETHUSDShorts shows that the number of margined shorts has now declined to a trend line support. If the price of Ethereum (ETH) keeps rising short term, we might see ETHUSDShorts decline further. However, it is clear that there is not much pain to be inflicted on the bears now as most of them are already out of their positions. The recent liquidation of shorts has made the longs more confident which is now the next target for whales and market makers.

Ethereum (ETH) shorts are still a long way down from the levels it was at the beginning of the month. Retail bears are not likely to gain their confidence back anytime soon which means the number of margined short will likely remain around current levels or even fall further. The number of margined longs on the other hand will keep on rising as traders buy the dip. When it reaches a certain level that is ripe for a shakeout, the whales will pull the plugs and we might see the bulls run for cover but it will be too late by then. The series of crashes and declines that we will see in the months ahead is going to unnerve a lot of buyers who are going to eventually give up to return later at the top of the next bullish cycle.

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