On the short term ETHBTC is testing new Lows but how about mid and long term?
Monthly chart shows something interesting and it eventually gives us some clues about what may happen if some conditions are met. First of all my mid/long term sentiment is Bullish and will remain Bullish unless we start breaking some “strong” supports (0.011BTC or 0.008BTC for instance). That said, ETHBTC is near two major supports, 0.018BTC on the monthly and 0.016BTC on the weekly. Considering the fact that ETH fundamentals (transactions, network activity, and so on) aren’t dropping we can expect them to increase as soon as we have some positive price action. Market is very cautious at the moment because everyone seems afraid of BTC achieving new local lows (8k or less) but if it doesn’t happen this month price will not lag forever.
Nevertheless if the market gains more confidence and ETH holds at this levels closing the month near 0.016 or 0.018 and if we have a bounce in the next month that bounce may signal the beginning of a strong reversal. Never forget that corrections are slow and boring, but Bull Runs can last less and move fast. The monthly chart clearly shows 6 big green candles and plenty of small red candles (ignoring the first 2 months).