Ethereum recently tumbled below the area of interest around the $280 level to signal that a downtrend is in the works. The price might still pull up for a quick retest before continuing further south, though.

The 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. However, the gap between the indicators seems to be narrowing to reflect weaker bullish momentum.

The price could still pull up to the 50% Fibonacci retracement level around $275 as this coincides with a former support and resistance level. A shallow pullback could already hit a ceiling at the 38.2% Fib that’s close to the 100 SMA dynamic inflection point and $250 level.

RSI is still pointing up to show that bullish momentum is in play and has some room to climb before indicating overbought conditions. Stochastic is also on the move up to show that buyers are in control and could stay on until overdone conditions are met. Turning lower could take ethereum back to the swing low around $188 or lower.

Ethereum has been on the back foot compared to bitcoin lately, although the price seems to be holding up quite well above the key $200 level. Word is that Grayscale Investments will be moving billions of dollars worth of holdings to Coinbase, likely placing bets on the likes of bitcoin, ethereum, litecoin, and XRP.

Sam McIngvale, Coinbase Custody chief executive, said:

“Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same.”

If so, this could revive institutional interest in ethereum and the rest of the cryptocurrencies, possibly spurring another leg higher. Then again, regulator attention seems to have picked up lately after the Facebook Libra announcement inspired a sharp market rally.

Images courtesy of TradingView