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Ethereum previously consolidated within a symmetrical triangle scheme to pause from its selloff, but eventually broke down to signal that further losses are likely. The 100 SMA is also making a bearish crossover to indicate that the selling pressure is about to rise.
However, RSI is pulling out of the oversold region to report a rapid return in bullish pressure. This could lead to a new test of the broken triangle down around the 115.00 area before you see more bearish action. This broken support aligns with the dynamic inflection points of moving averages to increase its strength like a ceiling.
Stochastic is also coming out of the oversold region to signal that vendors have to take a break and allow buyers to take over. If the purchase pressure persists, ethereum could still re-enter the triangle or even resume the rebound.
However, the feeling in the cryptocurrency sector is not so positive because the recent wave is leading other traders to participate in the FUD. All that coverage on the recent drop in prices from mainstream media has also helped sell pressure as more and more people take their positions.
Last week there was a brief improvement in sentiment, as the focus returned to institutional investment. However, it seems that buyers need more than just expectations to sustain gains and would prefer to see current industry developments.
Also, it does not help SEC president Clayton to say that the lack of consumer protection measures in the cryptographic market suggests that they will not approve bitcoin ETFs soon. This puts the industry a step back because it means that artists like ethereum and peers should wait a lot longer. Furthermore, the etereum is also subjected to further downward pressure as it has been overtaken by Ripple and could also face fierce competition from rival altcoins.
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