Ethereum had one of its worst trading periods. November took its toll on most assets as it was the second worst-performing month for some assets. ETH may end it as the third worst-performing following May and June’s close.
The reason for the drop in value is on that cannot be overemphasized. It’s one that many would love to forget, namely FTX. The largest altcoin was one of the biggest losers aside from the assets that were directly affected.
The massive losses led to a lot of uncertainty among traders which further led to its inability to reclaim lost levels. Nonetheless, the coin retraced to levels many never expected.
Ethereum Retested $1,100
At the peak of the bearish dominance, ETH was sent on a downtrend. For example, on Tuesday, November 8, the first wave of massive selling pressure hit the coin. As a result, the asset tested the $1,200 support.
The barrier held out against the attack as it found support for $1,220. It surged to a close at $1,334 which signifies a more than 14% drop during that intraday session. Many hoped that this would be the last we would see the altcoin drop.
The speculation was wrong as the next day came with a massive dip. The drop lasted another 24 hours as the altcoin dipped to a low of $1,070. The asset lost more than 17% in the end. It recovered the next day to erase the previously incurred loss.
It had another drop on the 20 which resulted in ETH retesting its monthly low the next. This is an indication that the highlighted support is one of the most vital levels of November. The drop had massive effects on indicators. Let’s look at the effects.
Ether was Oversold
For the first time in a while, ether was oversold. This happened on Nov. 9 as the downtrend bit harder. We noticed that the Relative Strength Index dipped to a low of 29.4. It recovered the next day. The metric also peaked at 51 as the bullish dominance hit its peak.
For a while now, the Moving Averages were not in focus. However, this changed as the asset retested the 200-day MA which had many hopeful of better price performance. The massive dip was preceded by a bearish divergence
We noticed that the asset had a bullish divergence a few days back which pointed to more price increases. To this effect, we noticed several greens on the chart. One of the longest was the current intraday’s as the worth more than 6%, a last -ditch effect many will say.
Ethereum may end the month at $1,300. However, this makes it the third time in a row that the asset has failed to close above $1,500. Additionally, there are several impacts on ETH in the weekly chart.
ETH losses 22% in one Week
Ethereum lost more than 22% on the first week of November. This happened at the wake of FTX saga after several daily dips. As a result, MACD started the process of a bearish convergence.
The 12-day EMA retraced as the longest candle of the month appeared. The metric went lower and is threatening divergence if market conditions #do no improve. The two green candles on the chart slowed the descent.
As a result there was no full divergence. However, the danger still looms as the 26-day EMA is on the uptrend and close to intercepting the 12-day. The Relative Strength Index also had its fair share of retracements.
The metric dipped to a low of 38 and raised fears of the asset becoming oversold. This concern reduced as RSI went above 40 before the end of the period under consideration.
