Despite having pulled back now more than 7% from its recent highs last week around the $1,680 area, Ether (ETH), the cryptocurrency that powers the Ethereum blockchain, is still up close to 18% in the last two weeks. Ethereum is the most popular and well-known smart-contract-enabled decentralized layer-1 blockchain protocol, with its native Ether cryptocurrency the second most valuable cryptocurrency by market capitalization after the world’s first cryptocurrency Bitcoin.
ETH sellers have been in control over the last few days ever since Ether failed an attempt last week to push above key resistance in the $1,680 area, a failure which appears to have triggered an uptick in profit-taking by short-term speculators. Technical selling by intra-day traders has likely also played a part – ETH’s latest leg lower was triggered by a bearish breakout from a short-term pennant structure that the cryptocurrency had formed on the 4-hour candle sticks.
Looking at ETH on a longer-term time horizon, things are looking more positive. Yes, ETH failed to get above the $1,680 resistance (so far), but the cryptocurrency is no longer stuck within the confines of the long-term downward trend channel that dominated for much of late 2022 and into early 2023.
Ether also continues to trade substantially to the north of all of its major moving averages, which are all now moving higher. Meanwhile, the rate at which the 50DMA is rising suggests that, assuming there is no massive drop in ETH in the coming weeks/months, there should be a bullish golden cross sometime in February (when the 50DMA crosses above the 200DMA).
ETH’s latest pullback means that, according to the 14-day Relative Strength Index (RSI), Ether is no longer overbought, suggesting thatRead more on cryptonews.com