Another week in a row Ether outperformed BTC but again in a negative way. Namely, Ether was a coin which had the highest drop in market cap of around $24B, losing additional 10% in value. This drop definitely pushed the price below the $2K psychological line where the support line at $1.950 has been clearly breached. Lowest level reached during the week was $1.700. Ether is finishing the week modestly above this level.

With the latest market move toward the $1.700 level, RSI returned to downside, reaching again the oversold market, for a second time within the last two weeks. RSI is finishing the week at level of 32. Moving averages of 50 and 200 days continue to move as two parallel lines with downtrend, with MA50 increasing its divergence from MA200.

During the week support lines at $1.950 and $1.850 had been breached, and ETH finished the week testing $1.700 support line. There has not been market strength to push the price further to the downside, so ETH reverted a bit back in order to test the $1.800 resistance line. In case that this resistance line is breached to the upside in the coming period, there is probability that ETH will return back to $1.950 resistance to test it once again. Considering that ETH is currently moving in oversold territory there is a decreased probability that the price might be pushed further to the downside, in which case it would be a signal that ETH is heading toward the $1.520 support line. Further negative fundamentals might trigger such a move, while at this moment there is very low probability for it.

Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.