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Ethereum is resuming its slide inside the long-term descending channel seen on the daily chart. Price just bounced off the resistance on a break below the short-term triangle consolidation, confirming that sellers have gotten the upper hand.
In addition, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse.
Stochastic is also pointing lower to confirm that sellers are currently in control. This oscillator has plenty of room to fall before reaching oversold levels, so further declines could be seen until then. RSI is also pointing down to reflect the presence of selling pressure that might be enough to take Ethereum to channel bottom or at least the mid-channel area of interest at $150.
Risk aversion and regulatory updates have combined forces to weigh on cryptocurrencies for the past 24 hours, with traders feeling extra anxious ahead of Roubini’s testimony in Congress. His prepared statements were already released and it contained his usual criticisms of Bitcoin and its peers.
Meanwhile, traders’ appetite for riskier assets has considerably dropped on account of Fed tightening expectations and higher US bond yields. This could lift borrowing costs and weigh on consumer and business spending, thereby weighing on investors‘ outlook and leading many to book profits quickly off recent gains.
On a less downbeat note for Ethereum, Coinbase added the 0x protocol token, which is based on Ethereum, to its professional trading platform Coinbase Pro. In a blog post, the company noted:
Once sufficient liquidity is established, trading will begin on the ZRX/USD, ZRX/EUR and ZRX/BTC order books. ZRX trading will be accessible for users in most jurisdictions, but will not initially be available for residents of the state of New York.
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