Ethereum has experienced a small 1.88% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around the $273 handle (at the time of writing), still below the $300 handle. This price decline has been existent over the past few months for Ethereum as the cryptocurrency loses 6.15% over the past 7 trading days an 41% over the past 30 trading days.
What’s been going on with Ethereum?
Prices have been steadily declining over a long period of time if you haven’t already seen our last analysis you really should catch up here. To summarise, for the majority of the year, Ethereum was trading within a consolidation pattern known as a symmetrical triangle. However, the bloodbath in August caused the market to dip further lower dropping below the $300 handle for the first time in 2018.
Ethereum has been relatively quiet in the news lately as the majority of the focus heavily remains on the price. However, Vitalik did go on an epic 75 tweet rant the other day about Ethereum, if you missed this you can catch up with it in our article, ‘Ethereum’s Vitalik Buterin Drops Hints about Casper in a Series of 75 Tweets’.
Where is Ethereum currently ranked?
Ethereum is currently ranked in 2nd position, only behind Bitcoin, in terms of overall market cap across the entire industry. In its 36-month-old existence, it has amassed a total market cap value of $27 billion.
Let us continue to analyse Ethereum price action over the past few trading days and update where we may head toward next.
ETH/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis, we had overviewed Ethereum over the long term, you should catch up if you haven’t already, here. We had overviewed the entire market throughout the year and finished by outlining a support area where we were expected the market to head toward if it would continue lower.
What actually happened?
The support area ranged between $271-$280 and we can see that price action headed toward this level and found support. This price area is supported via two downward 1.618 Fibonacci Extension levels and has provided significant support for the market over the previous few trading sessions.
Where can we go from here?
If the bearish pressure continues within the market and pushes price action below the $271 handle, we expect immediate support to be located at a further downside 1.414 Fibonacci Extension level (drawn in red) priced at $226. Support below this area is then expected at the psychological round number handle of $200.
What if the bulls regain control?
Alternatively, if the bulls can continue to hold at this support level and push higher, we expect immediate resistance to be located at the round number handle of $300 followed by the short term downside 1.414 Fibonacci Extension level priced at $317. Further significant resistance above this level is then expected at $350.
What are the technical indicators saying?
The technical indicators are still favouring the bears at this current moment in time. The RSI is trading below the 50 handle and has failed to break above the level upon its recent test. Until the RSI can sustain a break above the 50 handle we have to assume that the bears will remain in control within the market.
Let us continue to analyse price action a little closer for those who can’t keep their eyes off of the charts!
ETH/USD – SHORT TERM – HOURLY CHART
How has price action been over the past few days?
Analysing price action from the short term perspective above, we can see that the market had experienced a small bullish run as price action started from a low of $252 on August 14 2018 and extended to a high of $321 on August 18 2018, a 27% increase in price.
The market hit resistance at a short term 1.272 Fibonacci Extension level and rolled over.
Where is price action currently trading?
Price action has significantly declined from this recent short bull run as it now approaches the short term .886 Fibonacci Retracement priced at $259. This Fibonacci Retracement is measured from the entire bullish run outlined above.
Where can we go from here?
The bearish sentiment is expected to continue lower. If the market pushes price action below the support at the .886 Fibonacci Retracement priced at $259, we expect further support to be located at a downside 1.414 Fibonacci Extension level (drawn in blue) priced at $253. Further support below this level can be expected at the downside 1.618 Fibonacci Extension level priced at $245.
Alternatively, if the bulls can regain control at the short term .886 Fibonacci Retracement level, then we expect immediate resistance to be located at the .786 Fibonacci Retracement priced at $266. Further resistance can be expected at $278, $286 and $300.
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