The cryptocurrency market failed to rally during the Bitcoin Conference in Miami that took place over the weekend. In fact, the main cryptocurrencies trade with a weak tone, and an Ethereum classic price prediction cannot ignore a head and shoulders pattern visible on the daily chart.
Similar weakness is visible on other cryptocurrencies, too, starting with Bitcoin and ending with Ripple, for example. The consolidation in the last several days looks like a continuation rather than a reversal pattern. If that is the case, a move below $2,000 should trigger more weakness for Ethereum. Only a bounce and daily close above $2,800 would change the bearish bias.
The weakness in the cryptocurrency market is particularly interesting considering that gold is bid for more than two months now. One may argue that investors turned their back to digital assets and look for shelter in the traditional assets, such as gold. If that is the case, we should see an increasing divergence between the two assets by the time the inflation data for the month of May is released.
Ethereum Technical Analysis
Bears may want to wait for the price to close below the neckline before going short with a stop at the $2,800 area and a take profit derived from a risk-reward ratio of 1:2.