For the last two weeks market sentiment had slowed down with optimism, first due to negative developments regarding collapse of crypto-friendly Silvergate bank, and after it, due to negative developments around VC-friendly Silicon Valley Bank. The bank was financing start ups within a field of tech industry, which put into question further contingencies within this industry. Although ETH started the week around $1.580 still selling orders were dominant, hence, ETH reached its lowest weekly level at $1.370. The coin swiftly reverted to the upside, ending the week around $1.460.
During the general market sell-off, the RSI indicator reached a clear oversold side. It represents a signal that short term reversal is ahead. Moving average of 50 days halted its divergence from its MA200 counterpart and even started modest convergence, which jeopardizes the Golden cross that occurred several weeks ago.
Times of high volatility implied by negative news from the market, takes a week or two to calm down. This also implies investors' precaution. In case that further negative news hit the market during the week ahead, it could trigger another round of selling orders. In this case the price of ETH might move further to the down side, at least to $1.4K, or slightly lower. In case that market continues to calm down, then it might be expected for the price of ETH to return to previous levels, and test the $1.520 resistance line. Anyway, investors precaution is advisable in a week ahead.
During the general market sell-off, the RSI indicator reached a clear oversold side. It represents a signal that short term reversal is ahead. Moving average of 50 days halted its divergence from its MA200 counterpart and even started modest convergence, which jeopardizes the Golden cross that occurred several weeks ago.
Times of high volatility implied by negative news from the market, takes a week or two to calm down. This also implies investors' precaution. In case that further negative news hit the market during the week ahead, it could trigger another round of selling orders. In this case the price of ETH might move further to the down side, at least to $1.4K, or slightly lower. In case that market continues to calm down, then it might be expected for the price of ETH to return to previous levels, and test the $1.520 resistance line. Anyway, investors precaution is advisable in a week ahead.
