Ether’s Bull Run from December Lows Appears to Have Ended

Omkar Godbole
Aug 21, 2019 at 15:40 UTC
Updated Aug 21, 2019 at 15:52 UTC
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Ethereum’s cryptocurrency, ether, is losing altitude, with signs suggesting the asset has ended a bull market from December lows with a drop below $200 last week.

The price of ether since Jan. 1 via CoinDesk data.

The second-largest cryptocurrency by market capitalization is currently trading at $183 on Bitfinex, representing a 7.3 percent drop on a 24-hour basis. Prices fell 10.18 percent last week and closed (Sunday, UTC) at $194, the first under-$200 weekly close since mid-May.

More importantly, with the weekly close at $194, ether violated the uptrend from December lows as represented by the trendlines connecting December and February lows and December and May highs.

Essentially, the eight-month rising channel has been breached to the downside, a sign of bullish-to-bearish trend change, as per technical analysis theory.

So, the cryptocurrency could remain under pressure in the near-term, more so, as bitcoin, the top cryptocurrency, is looking south.

Weekly chart

Ether bottomed out at $83.00 in mid-December, as the bitcoin bear market ran out of steam near $3,100.

The cryptocurrency then charted its first bullish higher low at $102.50 in the first week of February, before breaking into a bull market with a move above $167 in the first week of April.

Notably, prices rose by almost 57 percent in May – the biggest monthly rise since April 2018 – extended gains to hit a ten-month high of $363 at the end of June.

The cryptocurrency pulled back in July, but the correction did not damage the bullish structure.

However, the latest dip below $200 has violated the bullish higher lows and higher highs setup represented by the rising channel from December lows. Further, ETH made a failed attempt to retake the rising channel earlier this week, reinforcing the channel breakdown.

The downward sloping 5- and 10-week moving averages (MAs) also indicate a bearish setup.

Meanwhile, the 14-week relative strength index (RSI) has dropped into the bearish territory below 50 and the moving average convergence divergence has crossed below zero for the first time since December, confirming a bearish reversal.

So, support levels lined up at $170 and $150 could come into play in the near term.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Ethereum image via Shutterstock; charts by Trading View

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.