Analysis: Ethereum Price Might Face Sell-off Below $204 Support

Ethereum price is facing the hurdle to cross the $210 resistance since the past few days. The pair is likely to approach a short term break either above $210 or below $204 level.

23 October 2018, AtoZMarkets Ethereum is following the bearish trend from the last few days. The price of the coin is constantly fluctuating in the same range. At the time of press, Ethereum is trading near $202 mark with the 24 hours total volume of $54 Million. The coin has a market cap of $20.84 Billion according to data. Since the Last week, the price of the coin dropped by 4.01% with a total volume of $ 430.23 Million. The highest price, $ 211.80, was on Tuesday, 16 October. 

Moreover, most of the top 10 cryptocurrencies are trending lower except Stellar, Tether, and Monero. Surprisingly, a couple of altcoins are outperforming today. But overall the market has been showing mixed results from the past week.  

According to the report titled “Cryptoasset Market Coverage: Valuation” which was prepared by Satis Group, a Cryptocurrency advisory firm shows that the price of Bitcoin will approach $33,000 in 2019. The trend will see it reach $72,000 in 3 years, and $144,000 in a decade.

Also, the Stais Group reports are the pessimist about Ether tough. Ethereum was listed alongside Bitcoin cash, Ripple, and EOS as cryptocurrencies that will decline in a decade. The group explains that application-specific blockchain networks like Ethereum and EOS don’t hold much value in their present form, and will struggle against government regulations and user interphase.

Ethereum Short Term Technical Analysis

Yesterday, the price of Etherum has started a decent upside recovery from the $196 low. The pair traded above the $208 resistance levels. But, sooner the coin started to break below that level and shifted gears towards $205 major support.

The coin keeps on struggling in the same range, following a small spike in early trading hours towards $207 levels. However, the buyers can't able to withhold the bearish pressure which dismissed the coin to break the daily support near $204 mark.

The 100 SMA line is below the 200 SMA line in the daily time frame which signals that the path of least resistance is towards the downward direction. Also, the gap been these two SMAs seems wider. Thus, a bearish rally might be seen in the upcoming days. 

CCI over a period 14 in the daily charts is valued at -35.7354 which means the price action is still neutral. However, the Relative Strength Index at period 14 and STOCH(9,6) signals the selling price action for intraday trading. 

If the ETHUSD pair breaks below the strong support which is placed at $204 mark than it might test towards $198- $200 levels. On the other hand, If Ethereum corrects higher, it is likely to face a lot of hurdles near the $208- $210 levels. 

Ethereum Daily Pivot Points

Ethereum has a daily support near $205 and resistance near $208 levels.

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