Ether’s Bull Run from December Lows Appears to Have Ended

Ethereum’s cryptocurrency, ether, is losing altitude, with signs suggesting the asset has ended a bull market from December lows with a drop below $200 last week.

The second-largest cryptocurrency by market capitalization is currently trading at $183 on Bitfinex, representing a 7.3 percent drop on a 24-hour basis. Prices fell 10.18 percent last week and closed (Sunday, UTC) at $194, the first under-$200 weekly close since mid-May.

More importantly, with the weekly close at $194, ether violated the uptrend from December lows as represented by the trendlines connecting December and February lows and December and May highs.

Essentially, the eight-month rising channel has been breached to the downside, a sign of bullish-to-bearish trend change, as per technical analysis theory.

So, the cryptocurrency could remain under pressure in the near-term, more so, as bitcoin, the top cryptocurrency, is looking south.

Weekly chart

Ether’s Bull Run from December Lows Appears to Have Ended 1

Ether bottomed out at $83.00 in mid-December, as the bitcoin bear market ran out of steam near $3,100.

The cryptocurrency then charted its first bullish higher low at $102.50 in the first week of February, before breaking into a bull market with a move above $167 in the first week of April.

Notably, prices rose by almost 57 percent in May – the biggest monthly rise since April 2018 – extended gains to hit a ten-month high of $363 at the end of June.

The cryptocurrency pulled back in July, but the correction did not damage the bullish structure.

However, the latest dip below $200 has violated the bullish higher lows and higher highs setup represented by the rising channel from December lows. Further, ETH made a failed attempt to retake the rising channel earlier this week, reinforcing the channel breakdown.

The downward sloping 5- and 10-week moving averages (MAs) also indicate a bearish setup.

Meanwhile, the 14-week relative strength index (RSI) has dropped into the bearish territory below 50 and the moving average convergence divergence has crossed below zero for the first time since December, confirming a bearish reversal.

So, support levels lined up at $170 and $150 could come into play in the near term.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Ethereum image via Shutterstock; charts by Trading View

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin56,097 0.91 % 0.56 % 4.76 %
Ethereum4,512.1 1.21 % 0.39 % 0.08 %
Binance Coin611.04 1.20 % 1.06 % 4.25 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana227.00 2.72 % 0.06 % 8.20 %
Cardano1.620 1.25 % 3.69 % 3.58 %
XRP0.9647 0.73 % 0.65 % 7.47 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

bitcoin
Bitcoin (BTC) $ 56,249.00
ethereum
Ethereum (ETH) $ 4,517.98
binance-coin
Binance Coin (BNB) $ 613.21
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 228.73
cardano
Cardano (ADA) $ 1.63
xrp
XRP (XRP) $ 0.967889
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 35.67
dogecoin
Dogecoin (DOGE) $ 0.206889