Ethereum, the second-largest cryptocurrency, experienced a strong wave of sell-offs on Tuesday. It weakened more than 12 percent and at one point traded just above the $2,300 mark.
However, according to some analysts, the current sell-off may continue in the coming days. One of the key indicators that speaks to the market’s trend and strength is that the so-called bearish mood prevailed among Ethereum cryptocurrency traders. This means that the forces that send the value of the asset down above those that make the asset stronger prevail.
The Moving Average Convergence Divergence (MACD) indicator signals a change in mood in the Ethereum market for the first time since last October. “This could mean that the current correction will continue for an undetermined period of time,” Katie Stockton, founder of Fairlead Strategies, told Coindesk.com.
MACD is an instrument of technical analysis of the asset market that is used to determine the direction of the market and, in particular, to measure its strength. If its value falls below zero, then this is precisely a sign of a change in trend. At present, however, MACD is not only below zero, but also at its lowest level since September 2018, the Coindesk.com.