Amid the cryptocurrency rally of this week, Ethereum gained but only in USD terms. It took losses in terms of its Bitcoin price as noted previously, and many analysts are stating that the market is waking up to the price being way overvalued compared to the utility it provides. One analyst recently discussing this in a blog post is the well-known crypto trader going by the alias Ugly Old Goat.
Ethereum failed to get over its daily 50EMA yesterday and has been on a downward trajectory since then. $500 could well be a tough resistance point with it being a significant, round psychological number and also where the 50EMA is trading at this point. Some signs point to upward movement from here with the drop being on low volume and higher lows and higher highs being formed. We also have the MACD approaching the centreline for a crossover to the upside.
We can see the drops more clearly on the 4hr chart. As noted in yesterday’s post, the $480 level was anticipated to act as some support, and the price did slow down approaching this point, but $470 acted as stronger support with the 50 & 100 EMA trading around this point. Drops have been on larger volume than gains, and the price action looks set to trade under the 50 & 100EMA.
A signal line crossover to the downside has just occurred on the hourly chart which is a bearish signal. The price is currently trading under the 50, 100, & 200EMA. The 200EMA may act as support level but is currently struggling to hold the falling price action.
- The drop is on low volume on the daily
- The 200EMA seems to be supporting on the hourly
- Daily MACD approaching a centreline crossover to the upside
- Forming higher highs and higher lows on the daily
- Many analysts questioning whether the price of Ethereum adequately represents the underlying fundamentals
- Recent underperformance amid strong optimism across the cryptocurrency market
- MACD crossed the signal line to the downside on both the 4hr and the 1hr.
- $480 level didn’t hold well as support
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Ethereum Price Analysis – Looks Bearish for Ethereum As It Fails to Pass 50EMA was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.