/latest/2020/03/sell-pressure-ebbing-but-no-bottoms-in-sight-for-eth-price-analysis/
Things are not looking great for Ethereum (ETH), after the leading altcoin lost a number of important levels last week trading against Bitcoin (BTC). Sell volume seems to be rapidly falling, however, and we might see ETH/BTC just squeak by within this market structure – there is still a chance to turn it around.
Starting on the weekly ETH/Bitcoin chart, we see little good. Ethereum’s loss of the ‘capitulation line’ level looks resounding, and probably signals further downside. With it, the EMAs have all been lost, and there is little market structure left to go down. The 8 EMA may soon cross bearish over the 21 if things don’t improve.
However, we can point to one important counter-argument here: sell volume has been waning sharply in the past week versus the prior one. This may signal an ebb in sell pressure, and we may see a tick up in the histogram profile this week.
On the daily ETH/Bitcoin chart, it doesn’t look like we’ve hit bottom yet. A more likely bottom target is the next support just a little lower. There, we might see a divergence on the RSI that would signal a more comfortable bottom.
The histogram is trending deep in the red, here, and will take a bit of time to even think about returning to the surface.
Finally, on the 3-day ETH/Dollar chart, we see the fantastic amount of damage done to Ethereum. The market structure, and a promising uptrend, are completely destroyed here, and the best we can hope for is that ETH stabilizes anywhere above $100, which is just above multi-year lows.
We are definitely again within ‘bottom-finding season’, and given what’s happening – and going to happen – to the global economy in the aftermath of the COVID-19 pandemic, all bets are off as to how this will all play out. Crypto has never been through an economic crisis.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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