- Ethereum (ETH) plunges below $160 USD support as bears curb the upward trending market to $200.
- ETH/USD started its third consecutive bearish day on Friday, dropping 3% in the past 24 hours, breaking below key channel support.
- The RSI, MACD, Volumes and Elliot’s Wave Oscillator indicate a death spiral in ETH’s price as prospects of a $150 USD price lingers.
Ethereum (ETH) has been on a tough run in the past three days as the price witnessed its third consecutive day in the red. The sharp fall in ETH/USD price has seen the second largest cryptocurrency break below key support levels at $170, $165 and $160 in a week signaling a possible dip further as the bullish hands weaken. As at time of writing, ETH trades at $158.32 USD, representing a 3.14% drop in the past 24 hours (12.30% in a week).
A break below the ascending channel on the daily candle charts will signal doom for ETH/USD, with a likelihood to plummet further towards major psychological support at $150 USD. With the near term prospects for Ether indicating a steer towards the lower band of the 20-day Bollinger Bands. The middle line is providing near term support with a break below it effectively signaling the start of an adventure to sub-$150 USD levels. The upper line of the 20-day Bollinger bands provides a capped resistance level for ETH at $181 USD.
As at the moment, the price of ETH is expected to test lower support levels with certainty except if a major catalyst turns the tide bullish towards the $200 USD mark.
A death spiral to $150 on the cards?
Technical oscillators are turning bullish too. The moving average divergence convergence (MACD) is signaling a further continuation of the selling pressures as a death cross forms. The daily relative strength index (RSI) oscillates at 54 (slightly bullish), but is nosediving towards oversold levels as bears gain strength in the market.
The Elliot Wave Oscillator is slowly turning red on the lower timeframe charts setting a mark for the downtrending asset.
Price: $158.32 USD
Key Support: $155 USD & $150 USD
Key resistance: $181 USD & $170 USD
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.