The price of Ethereum has somewhat stabilized over the past week, marking a slight 3% decline. ETH is currently trading at around $220. This brief stint of sideways action comes after ETH suffered a precipitous 27% price drop from $300.
Despite the price falls, Ethereum remains the second-largest cryptocurrency by market value with a market cap of $23.72 billion.
Looking at the ETH/USD 1-day chart:
- Since our previous ETH/USD analysis, this market hasn’t seen much action. Ethereum is currently trading around the strong resistance at $220 which is provided by the 200-day EMA and the short-term .618 Fib retracement.
- From above: If the bulls can push the price above the current level, we can expect higher resistance at $240 which contains the 100-day EMA. Above $240, resistance lies at $250, $254, $280, and $300.
- From below: The nearest level of support now lies at $220, provided by the 200-day EMA. Beneath this, further support lies between $202 and $200. If the selling continues beneath $200, the next levels of support are $193, $178 and $165.
- The trading volume has decreased substantially this week, which is a sign that the selling may be over pretty soon.
- The RSI remains under 50, which shows that the sellers are remaining in control of the market.
Looking at the ETH/BTC 1-day chart:
- Against Bitcoin, there has been some stabilization as the cryptocurrency continues to trade near 0.021 BTC. This level has provided very strong support over the past week. However, if the sellers continue to test the support, it will more than likely break down.
- From above: The nearest levels of resistance lie at 0.02134 BTC and 0.02192 BTC. If the bulls can continue above 0.022 BTC, higher resistance is found at 0.02295 BTC and 0.002395 BTC.
- From below: If ETH drops below the support at 0.021 BTC, we can expect the next levels of support to be located at 0.0215 BTC and 0.0204 BTC. Beneath this, further support lies at 0.020 BTC and 0.01967 BTC.
- The trading volume has decreased over this past week.
- The Stochastic RSI recently produced a bullish crossover signal in oversold territory as we wait for the moving averages to diverge, showing that bullish pressure is incoming.
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