Ethereum [ETH] Loses Key Support At $130 USD As Volume Spikes, Bullish Signs?

By Lujan Odera
Published December 19, 2019 Updated December 19, 2019
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Ethereum [ETH] Loses Key Support At $130 USD As Volume Spikes, Bullish Signs?

By Lujan Odera
Published December 19, 2019 Updated December 19, 2019
  • Ethereum (ETH) loses key support level at $130 USD level as volume spikes.
  • Bulls getting accustomed to sub- $130 levels as Santa’s gift of an uptrend looks unlikely.

The short spike in Ethereum’s price following Santa’s gift to Bitcoiners is wearing off as price signals a drop towards the bearish channel support level in coming days. As Bitcoin shot up from intraday lows of $6,400 to trade at $7,100 in the early trading hours of the Asian market, a number of top altcoins followed through with ETH/USD gaining 4%, to trade at $135.67 USD. However, the sharp gains are quickly being swallowed up with ETH currently trading at $127.96 USD with increased volatility showing cause for a further downfall of the crypto.

Currently, ETH maintains its second position on the cryptocurrency market cap charts with a total of $14,053,347,384 USD.

ETH/USD loses key support at $130 USD

Despite bouncing off the bearish channel support level, bulls struggled to push the price past the $143.00 USD resistance signaling a continuation of the 6-month long bear trend on the pair. The price bounced off 4 hour charts support/resistance levels at $134.59 USD on Dec. 18, with bears taking control in the market as volumes broke above the resistance. Bulls need to break the resistance for a chance to spark a potential alt season – which seems impossible at the moment.

chart by TradingView

The price is shooting lower by the moment as bears gain momentum following the unexpected spike caused by BTC. A fall and close in ETH/USD below the support level at $120. 75 spells doom for the pair as it signifies the start of a bearish run given the wild volatility of the market at the moment. Moreover, the price trades below the moving averages whereby the 50-day MA and 200-day MA are providing resistance levels on the daily charts.

Ethereum chart by TradingView

The current movements in ETH show the market is yet to stabilize with a move in either direction still plausible. However, the daily Bollinger bands are in a tight squeeze with the price dropping below the lower band with the middle band providing a near term resistance level. Furthermore, the relative strength index (RSI) is oscillating around the oversold level but is yet to break resistance – a break will show increasing strength of bulls in the market and may well signal an oncoming bullish trend.

Despite a number of scams including PlusToken and the recent hack of Upbit exchange, ETH seems to be holding steady for the moment. A clear direction in movement may be seen in early January.


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
Lujan Odera
396 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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