Ether in Downtrend After Major Losses

It’s been tough two weeks for Ether. Since our last update, the fledgling crypto-currency lost over 26 percent versus bitcoin and even more versus the US Dollar.

Ether in Downtrend After Losses

After the recent large losses, ETH/BTC is now in a downtrend. The altcoin lost close to 30 percent versus the US Dollar and 26 percent versus bitcoin.

ethbtch4-juy13-copy

Support on the way down can be found at this month’s low of 0.07574, followed by the 0.0631 swing low and the 0.05 round figure. On the way up we have resistance at the 0.10 round figure. A clean breakout above 0.11 BTC would end the current downtrend. A move above the 0.1259 swing high is needed for a new rally. On the long-term charts (weekly and monthly) ETH/BTC remains in a bullish trend.

Fundamentally no major news transpired during the past few weeks. It’s possible that the flurry of ICOs during June is now leading to selling pressure. Two major ICOs, Status and Tezos, stated that they plan to sell the acquired Ether, albeit at a gradual pace.

Another Unsuccessful Breakout in Dash

Dash Prices are back in a range after yet another unsuccessful breakout, the third one in a row. On July 6th DASH/BTC peaked to a high of 0.08697. Three days later a low of 0.06674 was hit. We are currently quoted somewhat in the middle at 0.07285 BTC per coin.

dshbtch4-july13-copy

A new rally requires a decisive breakout above the high at 0.087 BTC. Yes, we already had 3 failed attempts to go higher. But with each failed test we get closer to a potential trend starter. For us, it doesn’t matter which way the market moves. A break below the 0.0606 swing low would start a new downtrend while a move above 0.08748 could start an uptrend. In either case, following the market should pay off over the long-haul. On the long-term charts, Dash/BTC is looking bullish as well.

Bitcoin Remains in a Range

A crypto update is not complete without mentioned big brother. Bitcoin is still stuck in a range on the daily charts. The two levels to watch are $2,245 on the downside and $2,700 on the upside. A clean break above either of these price extremes could start a new trend lower/higher. On the long-term charts, BTC/USD is in rally mode, just like ETH/BTC and Dash/BTC.

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Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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