Ethereum has seen a significant further 13% price decline over the last 24 hours of trading. At the time of writing, the market is trading at the $106.49 handle as ETH/USD continues to approach the $100 support level.
- Ethereum has dropped to a price level not seen for over 18 months.
- The market continues to grind lower as price action approaches $100.
- Support moving forward: $111.21, $106.98, $100.46, $95, $90, $85, $83.61
- Resistance moving forward; $121.89, $132.28, $160.
Like the rest of the current market, the bloodbath has caused Ethereum to place fresh new lows not seen since May 2017. Ethereum is now ranked in 3rd position, behind Ripple, with a total market cap value of $11.01 billion. The decentralized operating system has lost a total of 47% over the past 30 days and 62% over the past 90 trading days.
The 40-month-old coin is now trading at a price that is 92% lower than the all-time high value. Let us continue to take a closer look at the market and continue to provide any potential support and resistance areas.
Ethereum Price Analysis
Analyzing price action from the 4HR perspective above, we can see that the market has continued its decline ever since BTC dropped below $6000 on November 14, 2018.
We can see that the market has remained largely below the 7 days EMA indicating the great influence that the sellers within the market command. We can see that price action has continued to decline below many major support areas as the market continues to find an area of respite.
From the chart above, we can see that price action had recently found support at the downside 1.618 Fibonacci Extension level (drawn in purple) priced at $106.98. As the market hit this level we can see that ETH/USD experienced a slight uptick. However, judging from the pressure from the sellers we can not really expect this support level to hold.
Moving forward, if the bears continue with their aggressive nature and push price action below the $106.98 handle, we can expect further support beneath to then be located at the psychological round number support at $100. This area also contains a long-term downside 1.618 Fibonacci Extension level (drawn in green) priced at $100.46.
If the selling continues to drop price action beneath $100 we can then expect further support below to be located at $90 followed by the support provided by the long-term downside 1.618 Fibonacci Extension level (drawn in orange) priced at $83.61.
Alternatively, if the bulls can regroup their efforts and push price action higher from $106 they will meet immediate resistance above at the short term downside 1.414 Fibonacci Extension level (drawn in purple) priced at $121.89 followed by the 1.272 Fibonacci Extension level (purple) priced at $132.28.
The RSI on the 4HR time frame remains within the control of the bears as it trades beneath the 50 handle. For a sign that the bulls are ready to begin a recovery, we will look for the RSI to break back above the 50 handle to indicate that the bulls are in possession of the market momentum.