Ethereum fell below $1,200 to start the weekend as prices continued to trade near a multi-week low. The drop comes as market sentiment remained bearish after a big week of economic data. Bitcoin also extended its recent declines as traders remained nervous after news that financial auditor Mazars paused all work for crypto clients.
Bitcoin extended their recent declines on Saturday as markets continued to be nervous following the recent uncertainty surrounding Binance’s proof of reserves audit. The auditor in charge of the diligence, Mazars, chose to pause all work with crypto clients earlier this week, leading to a resurgence of bearish sentiment.
Following this news, BTC fell for a third consecutive session, hitting a low of $16,584.70 to start the weekend.
Looking at the chart, BTC fell below a key support point of $16,700, hitting its lowest point since November 30 in the process. Prices have since rebounded, with the 14-day Relative Strength Index (RSI) rebounding from a low of 42.20, and currently sitting at 43.52.
The index now appears to be headed for a ceiling of 45.00, which if reached, could allow bitcoin to break back through the $17,000 mark.
Ethereum also remained in the red during today’s trading session, as prices fell below $1,200. After a high of $1,278.16 on Friday, ETH fell to an intraday low of $1,162.18 earlier in the day.
Like BTC, today’s decline sees ETH continue to trade near a five-week low ($1,150), with the RSI also tracking near a multi-week low.
As can be seen on the chart, the index has rebounded from a low of 40.20, and is currently at the 41.11 level. In addition, the 10-day moving average (red) is now near a downward cross with its 25-day counterpart (blue).
If this crossover takes shape, we could see ethereum fall towards a long-term low of $1,085.