Price analysis of Ethereum (ETC): Continuation of the downward trend


Ethereum has had a lower performance within a downtrend channel on its 1 hour table and has recently rebounded against resistance. The price may be due to resume the slide to the next Fib extension levels.

The 100 SMA is less than the 200 SMA in the longer term to indicate that the path of least resistance is downward. In other words, the downward trend is more likely to resume rather than reverse. The 100 SMA is also in line with the resistance of the channel to add to its strength as a ceiling.

At the moment, ethereum is testing the 50% extension and still seems ready for a move below the 61.8% level at $ 104.26 near the central channel's interest zone. Increased selling pressure could bring it to 78.6% extension at the $ 100 level or the full extension near channel support at $ 93.

RSI is close to the oversold region but seems to have some space to head south, which suggests that the selling pressure may remain in play for a while. longer. Reaching the oversold region and going back could indicate that buyers are trying to get the upper hand.

Ethereum seems to be joining the rest of his cryptocurrency colleagues in the slide once more, as the lack of any positive development in the industry is keeping up the current sentiment. For this reason, buyers are ready to book profits at key resistance levels for fear of another set of declines.

In these cases, the sale is usually accelerated and could even lead to a breakdown of short-term support areas. Also note that etereum was superseded by Ripple, which could mean another group of outflows for this altcoin.

With the recent debacle, many doubt that institutions can accumulate large amounts of money in the sector, dampening the hopes of a big rebound on the availability of institutional investment platforms.

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