Ethereum price drops like a rock on losing crucial support, why correction is unstoppable to $900

By John Isige
Published January 22, 2021 Updated January 22, 2021
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ethereum Weekly Price analysis
ethereum Weekly Price analysis

Ethereum price drops like a rock on losing crucial support, why correction is unstoppable to $900

By John Isige
Published January 22, 2021 Updated January 22, 2021
  • Ethereum plummets from record highs of $1,446, resting sub $1,000 amid widespread crypto corrections.
  • Ether may break down to $900 if support at $1,000 fails to hold.

The cryptocurrency market is in bloodshed with assets posting massive losses over the last 24 hours. Ethereum is down a whopping 21% amid continuing declines while Bitcoin is trading sub $30,000 and could drop to $25,000 as predicted on Thursday.

Over $165 billion of the crypto market value has been wiped off as investors panic-sell in a bid to take profits. Meanwhile, the total market capitalization holds at $850 billion after dropping from $1.015 trillion in less than 24 hours.

Ethereum is trading at $1,130 after the cryptocurrency lost the ascending parallel channel support as discussed on Thursday. Other tentative support levels at the 50 Simple Moving Average and the 100 SMA on the 4-hour chart did little to stop the losses.

For now, the least resistance path is downwards, especially with the Relative Strength Index heading fast toward the oversold area. The trend indicator highlights a bearish divergence, which may have validated the breakdown.

ETH/USD 4-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

Support at $1,000 is expected to help shake off the selling pressure in the market, and perhaps function as a stepping stone for Ethereum to resume the uptrend. However, if declines overshoot this zone, Ether is likely to extend the bearish leg to the 200 SMA before revisiting the primary anchor at $900.

Ethereum intraday levels

Spot rate: $1,130

Relative change: 13

Percentage change: 1.2%

Trend: Short term bullish

Volatility: Expanding

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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