© Reuters. What Ethereum Investors Are Watching As The Weekend Approaches: Will The Crypto Predict Market Action Again Next Week?
(CRYPTO:ETH) was trading mostly flat on Friday in tandem with (CRYPTO:BTC) and the S&P 500, which were trading around 0.7% and 0.24% higher respectively.
The general market and the cryptocurrency sector were expected to see at least one day of consolidation after a period of high volatility and falling prices.
Ethereum and Bitcoin have tracked the price action of the S&P 500 for most of the past few months, often trading in tandem when the stock market is open.
During the weekends, when the crypto sector is open but the stock market is closed, traders and investors often monitor the price action of Bitcoin and Ethereum to get a sense of the direction the S&P is heading. 500 could have over the coming week.
This will surely be the case this weekend, and once Ethereum completes its consolidation phase, a big move could be in store.
Last weekend, Ethereum plunged 14% during the 24-hour trading period on Saturday and Sunday, which was followed by the S&P 500 down 2.55% to start Monday’s trading day. .
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The Ethereum Chart: After dropping around 42% between June 7 and June 14, Ethereum traded sideways between $1,012 and $1,266 on declining volume.
The sideways trade combined with a drop in volume indicates consolidation and also suggests that the crypto is running out of sellers after such a steep decline.
- The sideways price action also ended the downtrend, although Ethereum is not trading in an uptrend. As the crypto continues to consolidate, traders and investors can watch for the development of a squeeze triangle pattern and then the arrival of large bullish or bearish volume and break Ethereum out of that pattern.
- Upward movement is likely to occur over the next few days, as Ethereum’s Relative Strength Index (RSI) has been hovering between 19% and 26% since June 12.
- When a stock or the RSI of a crypto reaches or falls below the 30% level, it becomes oversold, which can be a buy signal for technical traders.
- Ethereum has resistance above $1,081 and $1,245 and support below at the psychologically important mark of $1,000 and $905.
See also: Bitcoin (BTC) Tumbles as Analysts Seek Crypto Bottom
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