Ethereum Price Key Highlights
Ethereum made a downside break from consolidation to confirm that bears are back to push price lower.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to carry on than to reverse. The gap between the two has slightly narrowed, though, indicating a possible slowdown in selling pressure.
RSI is still heading south, though, so there may be some bearish momentum left. However, the oscillator is also dipping into oversold territory to reflect exhaustion. Turning back up could bring buyers in again.
Stochastic has more room to slide so sellers could stay in control for a bit longer before overdone conditions are seen. This might be enough to spur a test of the long-term floor or perhaps even a break lower.
ETH/USD Chart from TradingView
Market Factors
Ethereum is officially trading at its lowest level in over a year as almost the entire cryptocurrency market is in the red. The decline is being blamed on Goldman Sachs’ decision to back out of its bitcoin trading desk plans, dampening the outlook for institutional interest. This also weighs on optimism for the bitcoin ETF applications awaiting the SEC ruling.
It doesn’t help that the anticipated launch of ethereum futures is also expected to weigh on prices, much like the launch of futures did for bitcoin. Furthermore, analysts’ forecasts have been less bullish on ethereum compared to other rivals like bitcoin and Monero, so traders might be moving funds there instead.
