Ethereum was back below the $1,300 level on Wednesday, as the U.S. dollar rose following better than expected quarterly earnings. So far this earnings season, Netflix, Bank of America, and others have outperformed expectations, highlighting what some view as the resilience of the U.S. economy, despite the global slowdown. Bitcoin was also back in the red.
Bitcoin (BTC) was trading lower on Wednesday, as prices continued to decline following a failed breakout of a resistance at $19,550.
Following a high of $19,655.75 on Tuesday, which saw BTC/USD move past the aforementioned ceiling, prices slipped to a low of $19,144.77 earlier today.
Wednesday’s drop sees the token move closer to a breakout below $19,000, with bears likely targeting a floor of $18,900.
Bearish sentiment has largely been present during what many are calling “red October,” with BTC trading below $20,000 for the majority of the month thus far.
Looking at the chart, the 10-day (red) moving average has extended its downward cross with the 25-day (blue), which could be a sign of further declines to come.
In addition to this, the 14-day relative strength index (RSI) is tracking at 45.50, on its way to a floor at the 44.00 point.
Earlier in yesterday’s session, the token was trading above a ceiling of $1,330, however after failing to sustain a breakout, bears reentered the market.
The world’s second largest cryptocurrency fell to an intraday low of $1,291.66, a day removed from hovering at a high of $1,332.49.
As can be seen from the chart, today’s decline in ETH comes as the 14-day RSI continued to fall from its own ceiling of 46.80.
Currently, the index is tracking at 43.47, with the next visible point of support close to the 36.00 region.
Should price strength continue to deteriorate, we could soon see ethereum move further into bearish territory.
Register your email here to get weekly price analysis updates sent to your inbox:
Could we see ethereum fall below $1,300 this week? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.