Ethereum’s price crashed by yet another 15% over the past 24 hours and has found itself on the $1,200 level. The total market cap is below $1 trillion as cryptocurrencies tumble across the board.
The Daily Chart
On the daily timeframe, the range between $1300-$1,500, considered a significant demand zone, was quickly lost. This indicates high selling pressure. In this analysis, a Fibonacci Retracement is drawn from the Covid crash bottom to the all-time high.
The chart shows that the first critical support was at the Fib level of 0.236, which has broken below. This level lies at the $2,000. After several attempts, the first alarm went off when ETH failed to close above $2,000.
The price is currently approaching the next Fib level of 0.382, which is at $1,100. The following support levels are at $700 (50% correction of the uptrend) and the golden Fib level of 0.618 at $460, respectively. It’s also worth noting that a lot of the current downturn in ETH’s price could be event-driven rather than because of the macro. As such, it’s important to see how the situation with Celsius Network will unfold.
Key Support Levels: $1100 & $700
Key Resistance Levels: $1300 & $1500
The ETH/BTC Chart
Against Bitcoin, ETH does not show good signals either. The price has been forming one of the biggest red candlesticks recently. At the time of writing, ETH touched the horizontal support at 0.05 BTC (in green), and the bulls have temporarily defended it.
However, if the bears continue dominating the market, the next critical support would be 0.045 BTC. Currently, the bearish sentiment prevails, and this seems like a probable scenario.
Key Support Levels: 0.050 BTC & 0.0.045 BTC
Key Resistance Levels: 0.055 BTC & 0.06 BTC
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Cryptocurrency charts by TradingView.
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