Ether Price Indicator Turns Bearish for First Time Since October

[Btceth01]

The path of least resistance for ether appears to be to the downside as a widely tracked indicator rolls over in favor of the bears. The weekly MACD indicator has flashed a sell signal for the first time since going positive in October 2020, which suggests the correction may resume beyond the near-term,” Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note published Monday.
Moving average convergence divergence (MACD) is a technical indicator used to gauge trend changes and strength. Chart analysts consider a move below zero to signify a bearish shift in momentum and a move into positive territory as a bullish reversal signal. Not only has the MACD dropped below zero, it is also now at the most negative since September 2018, implying the strongest bearish bias in nearly three years.
Bitcoin’s weekly MACD turned bearish in the second half of April, signaling scope for a sell-off. Back then, the biggest cryptocurrency was trading above $50,000. Prices fell by 35% in May, hitting lows near $30,000. Ether, the native token of the Ethereum blockchain, was trading near $2,500 at press time, representing a 3% drop on the day and a 9% decline on a 24-hour basis, according to CoinDesk 20 data.Source