Ether failed to stay above $770-$800, as the fundamentals and general sentiment pushed it downwards. As a result, there’s a new downtrend forming since Jan 29, which is strengthening after the coin has sunk below $600, as Dmitriy Gurkovskiy, Chief Analyst at RoboForex, says. Now, there’s not only an important resistance at $770-$800, but also an important bear area, where most sell orders can be found.
Yesterday session, Ether hit a low at $553, and then started its recovery. However, the short term trend is still bearish, while the recovery potential looks quite limited.
The trendline at $770-$800 is likely to prevent Ether from going up in the short term, provided the things come around this way. This means that, in case no negative news is released for Ether, the coin will go range trading within $650-$800. MACD is still looking bearish, but yet it issues some reversal signals.
Ether selloff is somewhat based on emotions, as the investors follow the global drop in bitcoin, which got substantially cheaper over the last few days. Now what is important is whether the sellers are really serious and how they regard the cryptocurrencies in the long term. This should get quite clear in a few days.
Fundamentally, there is little to be changed for digital coins shortly. The process of spreading and recognizing cryptocurrencies within global financial players has slowed down, and chances are it will stop completely. Early this month, several US banks, including Bank of America, JPMorgan, and Citigroup, as well as Lloyds Group, banned buying bitcoins and other digital currencies with credit cards. This hows clearly that the tightening crypto regulation story continues. South Korea went transparent by requiring all traders to get verified through their bank account details. Meanwhile, China is still working on ICO banning project, and India may declare all cryptocurrencies illegal within the domestic finance and payment system. This is getting somewhat tight, and the crypto sector thus becomes less attractive and accessible for new investors.
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.