Ethereum has struggled this week after shedding 21% of its value and falling to $216. ETH fell beneath $200 but managed to find strong support at $193, which is where we saw a rebound.
ETH remains the second-largest cryptocurrency by market value with a market cap of $23.28 billion. The cryptocurrency had been on a tear against the dollar, but this was largely caused by Bitcoin’s aggressive growth. It has struggled heavily against BTC and created fresh multi-year lows.
Looking at the ETH/USD 1-day chart:
- Since our previous ETH/USD analysis, ETH dropped beneath the support at $225 and continued lower. It eventually found support at $193 which is the short-term .786 Fibonacci retracement level. After reaching this level, Ethereum rebounded back toward the resistance at the 200-day EMA.
- From above: If the bulls can break above the $220 resistance, higher resistance then lies at $229 and $240. The resistance at $240 is strengthened by the 100-day EMA. The next levels of resistance above $240 are located at $254, $279, and $300.
- From below: The nearest level of support is between $202 and $200. If the sellers push the market below $200, the next level of strong support is located at $193. Below $193, further support lies at $180, $178, $165, and $150.
- The trading volume surged during the middle of the month but has recently started to decrease.
- The Stochastic RSI recently produced a bullish crossover signal in oversold conditions as we wait for the moving average to expand to confirm that a push higher is about to commence. The RSI itself is beneath 50, showing that the bears are still in control.
Looking at the ETH/BTC 1-day chart:
- Trading against Bitcoin, ETH had somewhat stabilized around the 0.021 BTC level. However, ETH is currently trading at 0.02042 BTC.
- From above: The nearest level of resistance lies at 0.021 BTC. Above this, higher resistance lies at 0.02134 BTC, 0.022 BTC, 0.023 BTC, and 0.0245 BTC. If the buyers can continue above 0.0245 BTC, higher resistance lies at 0.026 BTC and 0.02786 BTC.
- From below: The nearest level of support lies at 0.02042 BTC, which is the short-term downside 1.618 Fibonacci extension level. If the sellers continue below 0.02 BTC, the next level of support lies at 0.01967 BTC.
- The trading volume has remained average for the year.
- The Stochastic RSI also recently produced a bullish crossover signal as we wait for the moving averages to expand to confirm the bullish move.
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