Where is the bottom for Ether? Is there a bottom? Is it possible the value of the second largest cryptocurrency by market cap could go to zero?
These are all pressing questions on investors minds as Ether continues to spiral downwards. The price of Ether is now significantly below the point where it started increasing exponentially last year. This was a significant support area for the coin but now with Ether trading far below, it is difficult to assess where the bottom is going to be. The smart contract platform’s cryptocurrency has been undergoing steep declines on large volume day after day.
There is a strong case to be made that the coin increased too fast last year as investors have seen the coin rise from around $8 to a high of near $1400. The coin is far into oversold territory on the daily RSI, but this is likely to have little effect given the strong selling momentum. The MACD continues to diverge to the downside which also is indicative of the bearish selling pressure.
On the hourly, we can see since the key support level broke around $270 Ether’s decline has built up momentum. The 50EMA is currently acting as resistance, but there is not much indication for upward movements regardless. The outlook is strongly bearish, and there is no clear answer to where the bottom is going to be.
- Key support broke around $270.
- Selling momentum is strong.
- RSI in oversold territory but unlikely to have an impact.
- Hourly moving averages likely to act as resistance.
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