Ethereum Price Analysis: ETH Drops Beneath $250 As Outlook Turns Bearish

in #cryptocurrency4 years ago

  • Ethereum dropped by a steep 8.22% over the past 24 hours as the cryptocurrency drops into the $220 region.
  • This latest price decline puts Ethereum on the verge of turning bearish.

Ethereum dropped by 8.22% over the past 24 hours of trading as the cryptocurrency drops into the $220 price level. It had rolled over from the $280 level at the start of the week which began the steep decline, causing the market to drop by a total of 25% from low to high over the past 3-days.

Ethereum has managed to find support at the .5 Fibonacci Retracement level, however, the momentum is certainly within the hands of the bears at this moment it time. It remains ranked in the 2nd position with a total market cap value of $24.30 billion.

Ethereum Price Analysis

ETH/USD – Daily CHART – SHORT TERM

Market Overview

We can see that Ethereum failed to break above resistance at the $280 level toward the start of the week which caused the cryptocurrency to roll over and fall. The cryptocurrency dropped beneath strong support at $250 and $235 (short term .382 Fib Retracement) to reach the current support at $220, provided by the .5 Fibonacci Retracement level.

We can see that ETH had spiked lower but the bulls are battling to defend this area of support.

Short term prediction: NEUTRAL/BEARISH

Ethereum remains neutral, but a drop and close beneath $220 is likely to turn it bearish.

If the sellers do push beneath $220, the first level of support lies at $212.78, provided by a downside 1.414 Fibonacci Extension level). This is then followed by additional resistance at $212 (downside 1.414 Fibonacci Extension level) and $205 (.618 Fibonacci Retracement level). If the sellers continue to drive ETH lower, support lies at $201 (downside 1.618 Fibonacci Extension level) and $200.

On the other hand, if the bulls can rebound from $220, resistance lies at $230, $236, $250, and $250.

Key Levels:

Support: $220, $212, $210, $201, $201, $200, $180.

Resistance: $230, $236, $240, $250, $255, $270.

Image from TradingView

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