Can Ethereum Hold Above $200 To Prevent Further Drops?

Yaz Sheikh Price Analysis PublishedMarch 10, 2020 | ModifiedMarch 10, 2020

ethereum

Can Ethereum Hold Above $200 To Prevent Further Drops?

  • Ethereum was hit pretty hard over the past 3-days after dropping by almost 25%.
  • The cryptocurrency managed to rebound at $198 as the buyers attempt a recovery.

Ethereum was hit pretty hard over the bloody weekend after it rolled over at the $250 resistance and went on to drop by almost 25% to reach a closing price of $198. In fact, it had gone as low as $190 but managed to rebound higher. 

The cryptocurrency is now in the midst of a revival as the buyers attempt to remain above $200, but can they hold?

Ethereum Price Analysis

ETH/USD – Daily CHART – SHORT TERM

ETH/USD. Source: TradingView

Market Overview

Ethereum started the weekend off pretty well as it managed to rise into the resistance at $250, however, upon reaching this level, the market rolled over and reversed. As it dropped, of fell beneath support at the 2-month-old rising trend line and continued to drop until the cryptocurrency managed to find support at $200 (specifically $198) before bouncing higher again.

More specifically, it fell into support at $190 but quickly recovered and moved higher. It is now attempting to overcome resistance at $205.

Short term prediction: BEARISH

Ethereum cannot be seen as anything other than bearish at the moment. It would need to break back above $227 to be considered as neutral and a further break above $250 could possibly turn it bullish, but that is some distance away.

If the sellers push ETH lower, the first level of support is located at $200. Beneath this, we can expect more support at the $191/$190 level. If the selling pressure continues beneath $190, additional support is located at $183 (.786 Fib Retracement), $181, and $180.

On the other hand, the first level of resistance to break is at $205. Above this, resistance lies at $213, $220, $227, $240, and $250.

The RSI is now beneath the 50 level and has flatlined. If it starts to rise back toward 50, this would be a signal that the selling momentum is starting to fade. It would still need to break above 50 to confirm that the buyers are in charge again.

Key Levels

Support: $200, $195, $191, $190, $183, $181.50, $180, $170, $167, $160..

Resistance: $205, $210, $213, $220, $227, $240,$245, $248, $250, $275, $270, $280, $300. 

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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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