Buy gold, crypto and China, tread carefully on rich U.S. tech: BofA’s Hartnett
U.Today - Since Ethereum has formally fallen below the crucial $1,800 support level, investors are becoming more concerned about the asset’s short-term future. ETH has now broken through this psychological barrier following weeks of pressure suggesting that the bearish momentum is still in control.
As of press time, ETH is down almost 1% on the day trading at about $1,783. Ethereum has been unable to generate any significant bullish momentum, and this decline is part of a longer downward trend. Ethereum is still showing a descending wedge pattern on the chart, with lower highs and lower lows appearing on a regular basis. Its Relative Strength Index (RSI), meanwhile, is still in the lower 30s, indicating that the asset is getting close to oversold territory but is not yet producing the kind of buying pressure that bulls would like.
A recent event involving Vitalik Buterin, a cofounder of Ethereum, adds to the story. Over the past few days, Buterin has been linked to multiple ETH sales that have been monitored by blockchain analytics platforms. The community has expressed concern about the timing despite Buterin’s prior declaration that he does not sell ETH for personal financial gain and that the majority of his sales are for charitable causes or to finance development initiatives.
Even the impression of founder-related sales may have a significant impact on investor sentiment as Ethereum experiences downward pressure. From a technical standpoint, ETH is currently facing the next significant support level at $1,750; a breakdown from there could lead to $1,600. With more barriers forming around the 50 EMA at $2,178, the main resistance on the upside is still located close to $1,973.
The path of least resistance seems to be downward until Ethereum breaks out of its falling wedge structure or a strong reversal pattern appears. Given the cautious sentiment and the hazy fundamentals caused by recent high-profile selling ETHs, near-term prospects could continue to be challenging.