Below $400: 'Death Cross' Hits Ether But Damage May Be Done

Like bitcoin at the close of March, ethereum's ether token has been hit with a "Death cross" indicator today.

The scary-sounding death cross occurs when the 50-day moving average crosses the 200-day MA from above.

It's worth noting that the 200-day MA includes almost one-year-old data, while the 50-day MA marks data that goes back close to three months.

Ether topped out at a record high of $1,424 on Jan. 13, according to Bitfinex data.

As of writing, ether is changing hands at $399 on Bitfinex - down 72 percent from the all-time high.

The sell-off has already taken place and today's death cross effectively indicates the bear market is three months old.

It should come as no surprise if ether bottoms out now the death cross has been confirmed.

ETH attempted to form a double bottom breakout on Monday, having formed a base around $360 since the end of March.

The influence of a sell-off in bitcoin made sure the cryptocurrency closed well below the neckline resistance of $418. ETH has also formed a doji candle at the neckline hurdle, indicating indecision in the marketplace.

A close above $418 would confirm a double-bottom breakout and open the doors for a rally to $475. Bearish case: A close below $358, if accompanied by a BTC sell-off, could yield a drop to $300. Ether and chart image via Shutterstock.