Ethereum returned below the $1,300 level on Wednesday, as the US dollar rose after better-than-expected quarterly earnings. So far, this earnings season, Netflix, Bank of America, and others have exceeded expectations, highlighting what some see as the resilience of the US economy, despite the global slowdown. Bitcoin is also back in the red.
Bitcoin
Bitcoin (BTC) traded lower on Wednesday, as prices continued to decline after the failed breakout of resistance at $19,550.
After a high of $1,655.75 on Tuesday, which saw BTC/USD move above the aforementioned ceiling, prices retreated to as low as $19,144.77 earlier today.
Wednesday’s dip sees the coin approaching a break below $19,000, with the bears likely targeting a floor at $18,900.
Bearish sentiment has been largely present during what many are calling “Red October,” with Bitcoin trading below $20,000 for the majority of the month so far.
Looking at the chart, the 10-day moving average (red) has extended its bearish crossover to the 25-day (blue) cross, which could be a sign of further declines to come.
In addition, the 14-day Relative Strength Index (RSI) is tracking at 45.50, on its way to a bottom at the 44.00 point.
Ethereum
Like BTC, Ethereum (ETH) fell for the second day in a row, as the coin moved below the $1,300 level.
Earlier in the session yesterday, the token was trading above the $1330 cap, but after failing to sustain the breakout, the bears returned to the market.
The world’s second largest cryptocurrency slumped to an intraday low of $1,291.66, a day away from flying at a high of $1,332.49.
As can be seen from the chart, today’s decline comes in ETH as the 14-day RSI continues to slide from its ceiling at 46.80.
Currently, the index is tracking at 43.47, with the next visible support point near the 36.00 area.
If price strength continues to deteriorate, we may soon see Ethereum move further into bearish territory.
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Could we see Ethereum drop below $1,300 this week? Put your thoughts in the comments below.
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Originally published at San Jose News Bulletin
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