Analysts have become bearish on Ether since the weekly chart has turned bearish.
According to crypto analysts, the world’s second-largest cryptocurrency, Ether, is showing bearish trends even though it recovered $3,000 over the last weekend. There is a possibility that the cryptocurrency might experience a $1,000 drop in the coming weeks. This comes as the digital currency is experiencing a falling trend on the daily chart for the past four weeks. The average convergence divergence (MACD) histogram, which is an indicator that is used to gauge the strength of trends, has been continuously signaling a downward bias.
According to the managing partner and founder of Fairlead Strategies, Katie Stockton, the negative reading on the MACD and the recent breakdown indicates a short-term bearish bias. In the past few days, Ether has managed to establish some foothold under the 50-day MA. This was accomplished after the crypto flipped the crucial support into resistance in the past week. This week, the weekly chart of the MACD indicator also crossed below zero. Katie Stockton believes that it is important for the MACD indicator to stay negative until 1 October to yield the signal to sell.
June 2021 was the last time that the MACD indicator had turned bearish. During this period, Ether fell by almost $900 and reached its lowest point by falling $1700 in May. According to the chief technical analyst of Token Metrics, Bill Noble, the technical and the macro trends suggest that MACD will continue to remain bearish for now. He added that Ether could be seeing a deeper correction to $1400 by October end if it fails to stay above $3300.