Ethereum recently broke below its short-term consolidation pattern to signal that it’s aiming for new lows. Price is officially at its lowest level in a year and could be ready to slide further.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The gap appears to have been maintained, so there might be no imminent threat of a crossover.
Stochastic is pointing down to show that sellers could stay in control until the oscillator shows oversold conditions. RSI is also heading lower to confirm that bears have the upper hand, but this one has already dipped into oversold territory.
Cryptocurrencies have been sliding over the past 24 hours on account of news that Goldman Sachs backed out of its plans to introduce a Bitcoin trading desk. As it turned out, the bank thinks that more steps need to be taken before a regulated entity can offer cryptocurrencies to its clients.
Ethereum has already been on weak footing prior to this report, though, so it’s no surprise that it’s one of the largest hit from the catalyst. Recall that many are wary that the launch of Ethereum futures on CBOE could lead to the same effect as it did on Bitcoin last year. With that, Ethereum could be setting its sights on the longer-term floor closer to $150, after previously failing to break past the $300 mark.
Also keep in mind that the frequently cited Satis ICO Research Advisory report on cryptocurrency forecasts has been less bullish on Ethereum compared to Bitcoin and Monero, which might have also convinced traders to move their funds to those digital assets instead. In the meantime, the downbeat sentiment and blow to institutional interest could keep weighing on Ethereum until a positive catalyst stems the decline.
Images courtesy of TradingView.
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