The troubles continue for Ethereum as the cryptocurrency remains under the $100 psychological support level. Although the market may have seen a small +4.20% price increase over the past 24 hour trading period the cryptocurrency still is trading at a price of around $88.59, at the time of writing.
- Ethereum troubles continue to struggle as price action sits below $90.
- The market continues to head further lower creating fresh yearly lows.
- Support moving forward; $84.40, $84.10, $80.25, $70, $68.83, $64.55, $52.41.
- Resistance moving forward; $98.90, $100, $111.65, $130.83.
The market has seen a drastic -23% price decline over the previous 7 trading days and a further -58% price decline over the past 30 trading days.
Ethereum is now ranked in 3rd position, behind Ripple, with a total market cap value of $9.30 billion. The 40 month old project is now trading at a price that is 93% lower than the all time high price.
Ethereum Price Analysis
ETH/USD – SHORT TERM – 4HR CHART
Analysing price action from the short term perspective above we can clearly see the devastation for the Ethereum market throughout November and the first few days during December 2018. The market had fallen a significant 55% from a high above $220 in November 2018 to a low just above $100 by the end of the month.
As December 2018 continued to trade, the market fell even further lower by a total 35% so far as the cryptocurrency breaks below the $100 and $90 support levels.
We can see that the downtrend had found some support at a combined area of support provided by a a long term downside 1.618 Fibonacci Extension level (Drawn in green) and a medium termed downside 1.414 FIbonacci Extension level (Drawn in purple) both priced at the $84 handle.
After reaching this support price action had rebounded but ran into resistance at the medium termed previous downside 1.272 Fibonacci Extension level (Drawn in purple) priced at $98.90 before reversing. Price action looks to be heading lower again.
Looking ahead, if the bearish pressure continues we should expect the market to reach the previous combined support level at $84 firstly. If the bearish pressure continues to push price action below this combined level of support we can then expect further support below this to be located at the short term downside 1.272 and 1.414 Fibonacci Extension levels (Drawn in red) priced at $80.25 and $68.83, respectively.
If the sellers continue to drive price action even further lower then we can expect further support beneath to be located at the medium termed downside 1.618 Fibonacci Extension level (drawn in purple) priced at $64.55 followed by the short term downside 1.618 Fibonacci Extension level (drawn in red) priced at $52.41.
Alternatively, if the buyers would like to recover some of the losses seen within this market the bulls will have to push price action back above the previous resistance level at $98.90 and then break above $100 before being able to climb higher.
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. Reach out to him at [email protected]