- The cryptocurrency markets have fallen across the board causing Ethereum to drop below $200.
- Strong support below at $188.61.
- Support moving forward; $194.84, $190.53, $188.61, $184.93. $180.15, $171.32.
- Resistance moving forward; $200, $202.82, $212.80, $222.78, $228.22, $245.04, $253.69.
Ethereum has seen a price decline over the past 24 hours of trading totaling -3.58%. The priced drop caused Ethereum to dip underneath to $200 handle for the first time since October 9th. Ethereum is currently changing hands at a price around $197.36, at the time of writing.
The cryptocurrency holds its number 2 position in overall market cap rankings with a total market cap value of $20.30 billion. Ethereum has seen a turbulent 90 days period losing -54%.
The 39-month-old cryptocurrency is now trading at a price that is -85% lower than its all-time high value.
Let us continue to analyze price action for Ethereum over the short term and highlight any potential support and resistance zones moving forward.
Ethereum Price Analysis
ETH/USD – SHORT TERM – 4HR CHART
Analyzing price action from the short term perspective above, we can see that Ethereum is still trapped within the range of the previous swing leg seen during September 2018. This price hike saw Ethereum rise from a low of $167.32 on the 12th of September 2018 and extend to a high of $255 on the 22nd of September 2018. This was a total price increase of over 52% from low to high.
Price action rolled over after meeting the high and eventually dropped below the symmetrical triangle that had been forming during September 2018. Price action dropped to find support at the .786 Fibonacci Retracement before rebounding again.
Since the 19th of October 2018, Ethereum was trading along the support level provided by the .618 Fibonacci Retracement level priced at $202.82. The recent price decline saw the market slip below this support and the $200 handle.
We can see that price action continued to fall until it found further support below at the short term downside 1.414 Fibonacci Extension level (drawn in green) priced at $194.84.
Moving forward, if the bears continue to pressure price action below the support at $194.84 they will meet further support below at the short term downside 1.618 Fibonacci Extension level priced at $190.53 followed by the .786 Fibonacci Retracement level priced at $188.61.
If the bearish pressure continues to push the market even further lower then more support below can be located at the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $184.93 followed by the .886 Fibonacci Retracement level priced at $180.15.
Alternatively, if the bulls can regather momentum and push price action higher the first barrier of resistance for them to break through will be the $200 handle followed by the .618 Fibonacci Retracement level priced at $202.82. Further resistance higher can then be expected at the .5 and .382 Fibonacci Retracement levels priced at $212 and $222 respectively.
If the bulls continue further higher then more resistance above will be expected at the upside 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $245 and $253 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.
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.