Ethereum [ETH] Prices Drop Beneath $200 After Major Bitcoin [BTC] Sell-Off

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Ethereum ETH DeFi
Image Courtesy of Flickr
  • Ethereum prices dropped by a total of 10% as it falls to the $190 level.
  • This price drop is largely a result of the BTC price fall.

Ethereum dropped by a total of 10% today as the cryptocurrency dropped beneath the $200 level and reached the $190 mark. The cryptocurrency was previously trading above $210 but with BTC breaking back beneath $9,000 today the market started to drop aggressively.

During the sell-off, Ethereum managed to find support at the 100-days EMA at around $180 where it managed to rebound and reach $190. 

Ethereum Price Analysis

ETH/USD – Daily CHART – SHORT TERM

ETH/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see that ETH had reached a high of around $220 during May 2020 and was unable to break above this level. It dropped into $200 during the first week of May but quickly recovered as it headed back above $210. 

However, when BTC dropped today, we can see that ETH also suffered heavily. It plummetted beneath the $200 level and dropped as low as $180 where it found support at the 100-days EMA. It rebounded higher from here to trade at the $190 level.

Short term prediction: NEUTRAL

The drop back beneath $200 has now turned Ethereum neutral. The cryptocurrency would have to climb above $220 to turn bullish again. A closing candle beneath $180 would likely turn Ethereum bearish in the short term.

If the sellers do push lower, the first level of support is located at $180 (100-days EMA). Beneath this, support lies at $175 (.382 Fib Retracement), $159 (.5 Fib Retracement), and $150.

On the other side, if the bulls regroup and push higher, resistance lies at $190, $200, and $210. Above this added resistance is found at $218 (bearish .786 Fib Retracement), $225, $230, and $235 (bearish .886 Fib Retracement).

Key Levels

Support:  $190, $180, $176, $170, $160, $159, $150.

Resistance: $190, $200, $210, $218, $223, $235, $240, $250.

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.
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.

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