Bitcoin, Ethereum Technical Analysis: ETH Down 14% This Week
Following a volatile week of trading, the uncertainty in cryptocurrency markets continued on Friday. Overall, the global crypto market cap was almost 2% lower during the session.
Thursday’s volatility extended into today’s session, with bitcoin prices continuing to consolidate near its recent support level of $35,600.00.
BTC/USD fell to an intraday low of $35,629.28 on Friday, following a high of $37,423.99 earlier in the session.
The move comes as bitcoin appears to be trading within a range of support ($35,600.00) and resistance ($38,510.00), in other words consolidating, after recent swings in price.
Typically, when we see a trending market, bullish or bearish, prices begin to move with uncertainty when early entrants exit, and take profits, whilst later entrants look to capitalize on the recent trend, by longing or shorting.
When this happens, prices tend to trade sideways, as markets have no clear direction, which seems to be the case with BTC this week.
Friday’s chart shows that the RSI has slightly crept over 30, and is tracking at 32, however bulls still appear hesitant to re-enter the market.
It’s possible they could make their move over this weekend.
ETH was trading over 14% lower in the last seven days, and was down over 3% as of writing, hitting an intraday low of $2,328.45 in the process.
Friday’s decline sees ETH/USD fall for a second consecutive session, as it continues to trade around support of $2,400.
Looking at the chart below, price action is still weak, or oversold, and is tracking at 26 on the 14-day RSI, whilst short-term momentum continues to hint at further weakness.
Although the moving averages of 10/25 days look to have exhausted the bearish sentiment on the daily chart, prices do not look like they are ready for an immediate rebound.
Could this streak of consolidation be here for some time to come? Leave your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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