Ethereum price has had a rocky start to the week and data suggests that more downside could be on the way.
Ether’s price faced resistance after hitting the $2,768 level on Oct. 21. A number of factors capped the rally, including increasing supply on exchanges, reduced network activity and weakening technicals.
Ether’s (ETH) 6.5% drop from the local high at $2,768 saw the ETH Coinbase Premium Index drop below its 14-day simple moving average (SMA) on Oct. 21, hinting at a potential sell-off in the near future.
ETH Coinbase Premium Index, which measures the gap between Ether’s price on Coinbase Pro and Binance, is used as an indicator of US investor demand compared to the rest of the world.
