cryptocurrency: Warning signs cropping up in crypto sphere amid 2020 resurgence

Ether has more than doubled this year, but technical indicators are starting to flash worrying signals for the second-biggest cryptocurrency.

Based on the GTI Global Strength Indicator, which measures upward and downward movements of successive closing prices, the coin is at its most overbought level since May 2019. An asset is considered overbought if the indicator exceeds 70 and oversold if it’s below 30 — Ether touched as high as 92.7 this week.

In addition, Ether’s triple-digit percentage gain this year has pushed the Bloomberg Galaxy Crypto Index, which tracks some of the largest digital assets, into overbought territory. Ether makes up close to 30 per cent of the index. Ether’s gain this year has pushed it into overbought territory.

“It is eye-opening the little run it has put together,” said Edward Moya, a senior market analyst at Oanda Corp. in New York. Its rally could continue, he said, but added that “if bullish momentum gets out of…