The second crypto, Ethereum (ETH), seems to have been left in the dust of late, even as other major cryptos Bitcoin (BTC) and Litecoin (LTC) have made dramatic movements.
But now, Ethereum looks poised to make its own major movement – and the prognosis is perhaps slightly more to the downside.
We’ll start with the most notable observation on the technical indicators, bearish divergence on the daily RSI versus USD price.
The rising price on daily candle closes in the top pane, clash with the falling RSI strength on the bottom, forming a bearish divergence and suggesting a breakdown from this ranging movement. Price has fought to stay about the blue 21 EMA moving average, and another daily close below this point would not be auspicious.
What’s more, the daily ETH/USD histogram indicator is ticking rather flat where it should be ticking up; and the MACD moving averages are falling to earth with little sign of turning up.
Moving to the ETH/BTC chart, we see suggestions of an imminent movement in one way or the other. After riding flat for a while following a huge break up in mid-May, price is now very tightly wedged between the local downtrend (which also has a long history on the chart), and the collection of common EMA moving averages.
Price on this daily chart has never closed below – again – the 21 EMA, but it seems like it very well could do after a strong reversal candle yesterday. But unlike on the ETH/USD daily chart, indicators such as RSI and MACD/histogram are more or less completely flat.
Thus, it is anyone’s guess what could happen. At the time of writing, Bitcoin looks weak and unlikely to hold near $8,000 without a major pushing during what’s left of June 8 (UTC time).
It’s possible that a Bitcoin dump could be answered by an ETH/BTC breakout and rally, saving the USD price of Ethereum. Or, the price of Ether could generally collapse.
Considering this latter scenario seems hard to stomach, considering how low ETH/BTC is already compared to its full price history (above, weekly chart). A break here would only leave a bit of support left before no-man’s-land below ₿0.024; and this chart looks nasty enough as it is without a price reversal coming soon.