Ether had another bad week, outperforming BTC for one more time. It could be noted that it is an interesting development, considering that Ethereum network has a significant place in development of many applications for DeFi`s and NFT`s, but ETH`s price within the last month, is just not following that potential. Following the theory of efficient markets, we just need to accept the premise that the market is always right, even in the case of current ETH`s price.
Monday trading ETH started with a shy uptrend, however, it soon reverted to the downside, breaking the $1.750 support line and finishing the week at the next support line at $1.520. During the whole week selling orders were prevailing on the market. RSI was modestly moving around 40, but ended the week at level of 30, which is the brink of another oversold territory. Moving average of 50 days is now clearly diverging from MA200 counterpart, leaving a potential cross for some time in the future.
During the last month it became clear that ETH is reacting to fundamentals more than any other coin on the market, beating also BTC in this sense. In this way, further monetary tightening might have additional negative impact on the price of ETH, which raises a question if ETH has reached bottom at level of $1.520, or is it yet to come? In case that price breaks the current support line, it opens a path toward next support at $1.400. Still, if the coin enters into a short reversal, then it will head toward $1.750 resistance with some potential for $1.850.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
Monday trading ETH started with a shy uptrend, however, it soon reverted to the downside, breaking the $1.750 support line and finishing the week at the next support line at $1.520. During the whole week selling orders were prevailing on the market. RSI was modestly moving around 40, but ended the week at level of 30, which is the brink of another oversold territory. Moving average of 50 days is now clearly diverging from MA200 counterpart, leaving a potential cross for some time in the future.
During the last month it became clear that ETH is reacting to fundamentals more than any other coin on the market, beating also BTC in this sense. In this way, further monetary tightening might have additional negative impact on the price of ETH, which raises a question if ETH has reached bottom at level of $1.520, or is it yet to come? In case that price breaks the current support line, it opens a path toward next support at $1.400. Still, if the coin enters into a short reversal, then it will head toward $1.750 resistance with some potential for $1.850.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
