October- 25, 2018 | AtoZ Markets
The cryptocurrency market had experienced a major drop within the span of an hour yesterday, with Ethereum seeing a massive decline. At the time of press, the price of the coin was trading at a price of $197, with a market cap of $20.3 billion according to Bitfinex data. Ethereum was showing a dip of 3.45% in the last 24 hours, with a trading volume of $1.48 Billion.
ETHUSD Technical Analysis
On the daily charts, the trendlines of the ETHUSD pair are stretching from $285 to $202 (bearish trend) and $182.68 to $188.42 (bullish trend). There is still a gap between the immediate support and resistance levels, eliminating the possibility of a trend breakout.
On the other hand, the MACD made a slightly bullish crossover by the signal and is currently trending just above the line. This is an indication of a bullish rally for the ETHUSD pair, but does not depict any major uptrend till now.
Ethereum after trading in a range since the last few days, the price of the coin has started a downside move against the USD. The ETHUSD pair declined sharply after it failed to move past the $204 and $205 resistance levels. Also, the price of the coin broke the $201, $200 and $197 support levels to move into a bearish zone. There was even a close below the $197 support and the 100 hourly SMA.
According to Fibonacci retracement charts, the price moved below the 23.6% Fibonacci retracement level of the recent decline from the $203 high to $190 low. On the upside, there are many resistances near the $197 level, which acted as a support.
In addition to this, the pair also tested below the 50% Fibonacci retracement level of the recent decline from the $203 highs to $190 lows. Therefore, if the price of Ethereum continues to correct higher than it is likely to face a lot of buyers near the $197 zone. Above $197, the next resistance is near $202 and the 100 hourly SMA. If the pair successfully breaks the $202 handle than it might surge towards $210 levels in short-term duration.
In the short-term, the Ethereum price has witnessed a positive prediction. However, technical indicators under a longer scenario do not see much potential for the Ethereum coin and have predicted it to be slightly bearish, with the hint of a bearish movement.
Ethereum Pivot Points
Ethereum price is holding a strong weekly support at $204 and resistance near $207 levels.
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