Ether, the native cryptocurrency of the ethereum network, has fallen to one-month lows below $800 and looks set to extend losses further.
As of writing, the second largest cryptocurrency by market capitalization is trading at $787 – down just over 5 percent in the last 24 hours. Prices fell to $779 earlier today, which is the lowest level since Feb. 8, as per data source CoinMarketCap.
The sharp price recovery seen last month ran out of steam at a high of $982 on Feb. 18. Ether has since depreciated by 19 percent.
The bad news for the bulls doesn’t stop there, either, as the chart analysis indicates this could just be the beginning of an extended sell-off towards $700-$670.
Daily chart
The above chart (prices as per Coinbase) shows:
- The retreat from the Monday’s high of $866 has left another higher low near the descending trendline resistance, signaling continuation of the sell-off from the record high of $1,420.
- The 50-day moving average (MA), 5-day MA and 10-day MA are trending lower, indicating a bearish setup. The 100-day MA support has been breached.
- The relative strength index (RSI) is biased bearish and indicates the scope for further sell-off in ETH prices.
View
- ETH looks set to test $700 and could extend the drop to $676 (Dec. 28 low) over the next few weeks.
- On the higher side, a break above the descending trendline (white dotted line) would signal bearish invalidation.
- Only a high volume move above $983 (Feb. 18 high) would indicate a bearish-to-bullish trend change and could yield a rally to $1,200.
Graph and pen image via Shutterstock
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Source: CoinDesk