Share this article
Analysts Turn Negative on Ether as Weekly Chart Tips Bearish
Some price-chart readers see the potential for a steep drop in the next few weeks.
Updated May 11, 2023, 4:39 p.m. Published Sep 27, 2021, 8:02 p.m.
Make us preferred on Google
Ether remains on slippery floors despite the weekend’s bounce to $3,000, analysts studying chart patterns told CoinDesk Monday. One source signaled the possibility of a $1,000 drop over the next few weeks.
The second-largest cryptocurrency is stuck in a four-week falling channel with the daily chart moving average convergence divergence (MACD) histogram – an indicator used to gauge trend strength and changes – signaling a downward bias.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“A bearish short-term bias still seems appropriate given the recent breakdown and a negative reading in the daily MACD indicator,” Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note shared with CoinDesk on Monday.
Ether has established a foothold under the 50-day moving average (MA) in the past few days, having flipped the crucial support into resistance a week ago.
The weekly chart MACD histogram has also crossed below zero this week, adding to bulls’ woes. As per Stockton, the indicator needs to stay negative till Friday to yield a sell signal.
“That would be an intermediate-term setback if we also see [immediate] support near $2,874 taken out,” Stockton said in an email.
Short-term cautious
The last time the weekly MACD turned bearish, in June, ether fell by nearly $900 to revisit May lows near $1,700.
Bill Noble, chief technical analyst at Token Metrics, said both the macro and technical picture appear aligned in favor of the bears for now.
“Broadly speaking, if ether fails to stay above $3,300 there is a risk of a deeper correction to perhaps $1,400 by the end of October,” Noble said in an email. “The Evergrande situation could be similar to the events of 2008, so while the ETH bull case is intact for the long-term, it may be best to be cautious in the short-term.”
A breakout above the 50-day MA would weaken the bear case and expose a path higher, toward the Sept. 16 high near $3,675. Ether was trading near $3,000 at press time, a 2% drop on the day. A push higher by the cryptocurrency earlier Monday was rejected near $3,200.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin and ether volatility trading gets easier with Polymarket's new contracts
Polymarket has launched new prediction markets tied to Volmex's bitcoin and ether 30-day implied volatility indices.
What to know:
- Polymarket has launched new prediction markets tied to Volmex's bitcoin and ether 30-day implied volatility indices, allowing users to bet on how high volatility will get in 2026.
- The contracts pay out if volatility indices reach or exceed a preset level by Dec. 31, 2026, letting traders wager on the intensity of price swings rather than market direction.
- Early trading implies roughly a one-in-three chance that bitcoin and ether volatility will nearly double from current levels.
Top Stories
