Like the majority of cryptomarkets, Ethereum has plunged by a total of 12.9% over the past 24 hours of trading against the USD. The market is now trading at a price around $186 at the time of writing, bringing the total 7. day trading decline for Ethereum down to -16.93%.
- The cryptocurrency wipeout has caused Ethereum to break back below $200 once again.
- The market has recently found support at the $180 handle.
- Support moving forward; $180, $169.55, $160, $155, $150, $146.
- Resistance moving forward; $188, $187, $200, $202, $212, $222, $234, $255, $271, $278, $290, $300.
Ethereum remains in 2nd position in terms of overall market cap value rankings with a total market cap of $18.69 billion. The 39-month-old coin has seen a rough 90 day trading period as the markets drop -36.99%.
Let us continue to analyze price action from the medium term and highlight any potential support and resistance moving forward.
Ethereum Price Analysis
Analyzing price action from the medium termed perspective above we can see that the significant price drop experienced today caused price action to break below the short term triangle which was forming within the market for the past 10 weeks or so.
After price action broke below the triangle the market continued to plummet further lower breaking below the $200 handle and eventually the $180 handle, briefly. At the time of writing the market has recovered slightly as Ethereum continues to hold well against Bitcoin causing ETH/USD to not drop further lower.
We can see that the market is now currently trading just below support provided by the .786 Fibonacci Retracement level (drawn in blue) priced at $188.73. This Fibonacci Retracement is measured from the previous bullish swing leg when price action began at a low of $167.32 on the 12th of September 2018 and continued to rally to a high of $255 on the 22nd of September 2018. This was a total price increase amounting to 50% from low to high.
Moving forward, if the bulls can regroup and push price action above the $188.73 handle we can expect immediate resistance above to then to be located at the .618 and .5 Fibonacci Retracement levels (drawn in blue) priced at $202.69 and $212.50 respectively. If the bullish momentum continues even further higher, more resistance above can then be located at the .382 and .236 Fibonacci Retracement levels (drawn in blue) priced at $222 and $234 respectively.
Alternatively, in our bearish scenario, if Bitcoin continues to fall hard and Ethereum cannot hold its value against Bitcoin we can expect this market to head further lower. In this case, we can expect immediate support below to be located at the .886 Fibonacci Retracement level (drawn in blue) priced at $180. This area of support is bolstered by a long term downside 1.414 Fibonacci Extension level (drawn in green) adding to the expected strength in this area.
If the sellers continue below the $180 handle we can look for further support beneath to be expected at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in lilac) priced at $169 and $160 respectively followed by the 1.618 Fibonacci Extension level (drawn in lilac) priced at $146.35.