Ether’s short-term pattern has turned bearish with the cryptocurrency finding acceptance under a crucial support.
- The native token of Ethereum’s blockchain fell more than 8% on Monday, falling below an uptrend line connecting July and September lows.
- Ether printed a UTC close under the widely-tracked 100-day moving average with the long-held support level of $3,900 turning into resistance.
- The breakdown is backed by a below-50 reading on the daily relative strength index chart, which could encourage more selling. The weekly histogram of trading indicator moving average convergence divergence (MACD) also fell below zero, indicating a bearish trend.
- “Both the weekly stochastics and MACD are on sell signals, which calls for risk management,” Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note published late Monday.
- Extended sell-off, if any, could find support near $3,250 – the current level of the 200-day moving average.
- According to Stockton, the broader outlook remains constructive with monthly MACD and long-term trend gauges still showing bullish signals. “It is important to note that ether confirmed a breakout to new all-time highs in November for a measured move projection near $6000, providing a long-term bullish framework,” she noted.
- Ether was last seen trading near $3,800.