Analytics provided by BBA
While bitcoin treads water in the mid-$750’s following another bullish week, Ether has been getting some less flattering attention.
Early Friday morning the cryptocurrency based project known as the DAO (“Decentralized Autonomous Organization”) was exploited for about 3.5 million Ethers, equivalent to around $50 million USD via a quirk in the code related to child DAO’s.
The public perception surrounding the event was certainly not good for Ethereum, the DAO, and other smart contract-focused endeavors.
This is just the first big hurdle for this very new technology. There is no doubt that this will negatively affect price and market confidence over the next few months, although it could end up being a good thing over the long term. Extended correction
Let’s look at the charts to see if they corroborate the theses above. ETH/BTC price chart If we look at the 3-day chart, we can see that the prospects for a bull market continuation now look rather grim, at least over the short to medium term, due to the fact that we have a legitimate breakdown from the symmetrical triangle combined with what is now a confirmed double top.
Also notice the large spike in sell volume on the breakdown candle, along with the move below the A/D (Accumulation/Distribution) uptrend line for the first time in history. Both of these indications point to a more extended correction and consolidation.
Additionally, when we look at momentum we see that Willy has broken lower but still has plenty of room to run to the downside, RSI is now well below the centerline, and MACD is just starting to pick up some steam to the downside. Price is testing pivot Finally, volume profile remains almost nonexistent down to the ~0.007btc level which leaves a lot of price discovery left to be done. Conversely, […]
