On Wednesday, Ethereum fell below $1,300 as the U.S. dollar rose after better-than-expected quarterly earnings. Netflix, Bank of America and other companies have exceeded expectations so far, which highlights the U.S.’s resilience despite global slowdown. Bitcoin also returned to the red.
Bitcoin
Bitcoin (BTC), which was traded lower Wednesday after a failed breakout at $19,550 resistance, continued its decline.
After Tuesday’s $19655.75 high, BTC/USD moved above the ceiling to reach $19,144.77 on Wednesday. Prices dropped today to $19,144.77.
Wednesday’s drop sees the token move closer to a breakout below $19,000, with bears likely targeting a floor of $18,900.
Bearish sentiment has largely been present during what many are calling “red October,” with BTC trading below $20,000 for the majority of the month thus far.
The chart shows that the 10-day moving average (red) has continued to cross the 25-day (blue) line, which may indicate further falls.
The 14-day relative strength indicator (RSI), which is currently tracking at 45.50 on the way to a floor of 44.00 points.
Ethereum
Like BTC (Bitcoin), ethereum fell again for the second day in a row, with the token moving below $1,300.
Earlier in yesterday’s session, the token was trading above a ceiling of $1,330, however after failing to sustain a breakout, bears reentered the market.
The world’s second largest cryptocurrency fell to an intraday low of $1,291.66, a day removed from hovering at a high of $1,332.49.
As can be seen from the chart, today’s decline in ETH comes as the 14-day RSI continued to fall from its own ceiling of 46.80.
The index currently tracks at 43.47. Support is close to 36.00.
We could see ethereum slide further into bearish territory if the strength of the price is not restored.
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