Bitcoin
$48,328.59+0.43%
Ethereum
$3,473.40-2.96%
XRP
$1.08-1.71%
Cardano
$2.39-1.84%
Polkadot
$34.71-5.55%
Stellar
$0.324425-2.44%
Dogecoin
$0.242831-4.73%
Chainlink
$28.65-4.73%
Uniswap
$24.94-3.83%
Polygon
$1.41+1.92%
Litecoin
$183.42-1.80%
Bitcoin Cash
$632.73-1.57%
Algorand
$1.97-6.50%
Wrapped Bitcoin
$48,333.11+0.42%
Filecoin
$86.52+2.50%
Cosmos
$34.07-7.97%
The Graph
$0.837176-2.30%
Tron
$0.107570-10.57%
Ethereum Classic
$57.61-1.35%
Aave
$362.25-6.73%
Tezos
$6.21-8.31%
EOS
$5.24+3.15%
NEO
$49.53-3.12%
Monero
$267.17+0.04%
IOTA
$1.68+10.20%
BitTorrent
$0.003971-2.71%
Bitcoin SV
$158.47+0.02%
Waves
$29.16-4.51%
Maker
$2,839.73-3.00%
Dash
$203.35-2.11%
Decred
$148.74+1.24%
Decentraland
$0.829489-2.43%
ICON
$1.93-4.20%
NEM
$0.185369-2.14%
Zcash
$141.74+1.86%
Qtum
$12.64-0.87%
NuCypher
$0.334486-0.31%
Bitcoin Gold
$67.30+0.17%
Yearn Finance
$33,957.50-2.61%
OmiseGO
$8.59-0.98%
Basic Attention Token
$0.762700-1.73%
0x
$1.10-2.22%
Ren
$1.07+5.22%
Paxos Standard
$1.00-0.04%
Fetch.ai
$0.853856-6.40%
Bancor
$4.11-2.21%
Band Protocol
$9.27-4.75%
Siacoin
$0.018558-1.59%
Kava.io
$6.22-1.43%
Nano
$5.60-1.62%
Loopring
$0.462549-2.03%
Storj
$1.39-1.69%
Civic
$0.541171+2.33%
Lisk
$3.57-1.97%
Numeraire
$46.06+2.45%
Orchid
$0.368846-2.26%
PAX Gold
$1,767.32-0.23%
Augur
$26.30-0.83%
Aragon
$5.98-0.54%
Enzyme
$115.27-1.81%
district0x
$0.175728-1.57%
Kyber Network
$1.83-7.28%
SingularDTV
$0.001527+17.79%
Tether
$1.00+0.00%
USD Coin
$1.00+0.04%
Dai
$1.00+0.02%

Ether Up from 100-Day Low, But Bounce Back Lacks Substance

Ether's technical recovery from the 100-day low hit yesterday looks to be a "dead cat bounce."

Mar 19, 2018 at 12:40 p.m. UTC
Updated Sep 13, 2021 at 7:42 a.m. UTC

Ether's technical recovery from the 100-day low hit yesterday looks to be a "dead cat bounce."

The world's second largest cryptocurrency by market capitalization, which traded around $740 a week ago, fell to $460 on Sunday – its lowest level since Dec. 11.  The 37.8 percent fall looks to be associated with ether-specific news flow and broad-based risk aversion in the crypto markets.

Last week, an official at the U.S. Securities and Exchange Commission (SEC) said the agency is investigating "dozens" of initial coin offerings (ICOs) – news that seems to have weighed over ether, given the ethereum blockchain serves as a platform for token creation via its ERC-20 standard.

Further, ETH's drop below $500 yesterday coincided with reports that the EOS team is releasing about 400,000 ETH tokens on the market. While the EOS token is built on ethereum, it is widely considered a crypto competitor.

Currently, ETH is trading at $535, having clocked a high of $556 earlier today, according to CoinMarketCap. The retreat from the intraday high suggests the rally from $460 was likely a "dead cat bounce" – a correction in a bearish trend.

Daily chart

The above chart (prices as per Bitfinex) shows that the head-and-shoulders breakdown seen last week confirmed a longer-term bullish-to-bearish trend change.

However, the oversold conditions, as highlighted by the relative strength index (RSI) and the previous's day long-tailed candle (signals bearish exhaustion) indicate ether will likely trade in the sideways manner for the next couple of days.

The upside could be capped around the descending (bearish) 10-day moving average (MA), while the previous day's low of $452 could act as a strong support, given the oversold conditions.

View

  • Ether could consolidate in the range of $630–$550 over the next 48 hours.
  • Only a daily close (as per UTC) above the head-and-shoulders neckline resistance (former support) of $640 would abort the bearish view.
  • Bearish scenario: Repeated failure to beat resistance at $565 (Feb. 6 low) could yield a bigger sell-off to  $385 (Nov. 30 low).

Tennis ball in net image via Shutterstock

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...