Ethereum has seen a small price decline totaling 2.4% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $224.15 after seeing a small 7-day rolling price increase which totals just over 1.5%.
- Ethereum has continued to trade sideways for the past trading week
- Price action rebounded from our expected support at $202
- Support levels moving forward; $212.82, $202.82, $188.61, $180.15.
- Resistance levels moving forward; $228.22, $245.04, $253.69, $268.13, $276.59, $288.73.
Ethereum still continues to hold the number 2 ranked position in terms of overall market cap across the entire industry, second only to Bitcoin. The 38-month-old coin currently holds a market cap value of $22.65 billion after seeing a precipitous 52% price drop over the past 90 trading days. Ethereum is still trading at a price that is 84% lower than its all-time high value.
Let us continue to analyse price action for ETH/USD over the short term and update our expected support and resistance levels.
Ethereum Price Analysis
ETH/USD – SHORT TERM – 4HR CHART
Analyzing Ethereum price action from the short term perspective above, we can see that Ethereum has not really made much movement from where the market was trading since our last analysis. Instead, the market has traded sideways over the past week, evidenced by the 1.5% 7-day rolling price increase.
We can see that the market had experienced a bullish run when price action started from a low of $167.32 on the 12th of September 2018 and extended to a high of $255 on the 22nd of September 2018. This was a price increase totaling 52% from low to high.
In our last analysis, we had expected the market to be supported by the short-term .618 Fibonacci Retracement level priced at $202.82. We can see that as the market reached this exact price level, the market was rejected causing price action to rally back higher. The market manages to make a move back up to the $240 handle before the bears came back to push price action lower to where it is currently trading at resistance provided by the short-term .382 Fibonacci Retracement level priced at $222.78.
What to expect over the coming few days?
Moving forward, if the bulls manage to push price action back above resistance located at the $222.78 handle we can expect further immediate resistance higher to be located at the medium term 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $245.04 and $253.69, respectively.
In the event that price action can continue even further higher, we can expect more significant resistance to be located at the short-term 1.272 and 1.414 Fibonacci Extension level (drawn in blue) priced at $268.13 and $276.59, respectively. The final area of significant resistance to highlight from the short term charts above is the 1.618 Fibonacci Extension level (drawn in blue) priced at $288.73.
Alternatively, if the bears re-enter the market and pressure price action lower we can expect immediate support to be located at the short term .5 Fibonacci Retracement level (drawn in red) priced at $212.80. Significant support expected below this level can then be located at the short-term .618 Fibonacci Retracement level priced at $202. This area has provided significant support previously and is expected to continue to provide the same level of support moving forward.
In the even that the bears can collapse price below the $200 handle then further support located below can be expected at the .786 and .886 Fibonacci Retracement levels priced at $188 and $180, respectively.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com