Ethereum Price Analysis: Struggles Continue for Ethereum, Bulls Still Not Ready to Give Up

ethereum

Ethereum Price Analysis: Struggles Continue for Ethereum, Bulls Still Not Ready to Give Up

  • Ethereum continues to struggle as price action approaches the important $200 level once again
  • RSI Momentum indicators oversold on 4-hr chart
  • Support Moving Forward; $202.82, $188.61, $180.15, $167.32
  • Resistance Moving Forward; $212.89, $222.80, $253.69, $266.11, $275.69

Ethereum has seen a steep 9.89% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $209 after suffering a further precipitous 23.68% price drop over the past 30 trading days.

Ethereum still continues to hold the number 2 ranked position in terms of overall market cap across the entire industry. It currently holds a $21.45 billion market cap value after seeing a 51% price decline over the past 90 trading days. However, it is important to highlight that Ripple is only $2 billion away in terms of market cap value to claim the 2nd position ranking. With the significant price surge experienced in Ripple last week, it is very likely that Ripple has the potential to overtake Ethereum once again.

Let us continue to analyze price action for Ethereum over the recent period and highlight any potential support and resistance zones.

Ethereum price analysis

ETH/USD – SHORT TERM – 4HR CHART

ethereum
https://www.tradingview.com/x/KMxlngg3/

Analysing the market from the short term perspective above, we can see that price action had seen a price hike when the market started from a low of $167.32 on September 12th, 2018 and extended to a high of $255 experienced on September 22nd, 2018. This was a total price increase of 52% from low to high.

We can see that the market met resistance at the short term 1.414 Fibonacci Extension level (drawn in green) priced at $253.69 before rolling over. After reversing, the market continued to fall until finding a level of support at the short term .618 Fibonacci Retracement level priced at $202.82. This Fibonacci Retracement is measured from the entire bullish run outlined above.

What to expect in the coming days?

Moving forward, if the bears persist with their negative pressure and push price action below the $202 support handle, we can expect immediate further support to be located at the psychological round number of $200.

Further support located below the $200 handle can be then expected at the .786 and .886 Fibonacci Retracement levels priced at $188.61 and $180.15, respectively. If the bears continue further lower more support can be found at the price low of $167.32 seen on September 12th, 2018.

Alternatively, if the bulls can regather momentum and push the market higher, we expect immediate resistance to be located at the .5 Fibonacci Retracement level priced at $212. Further resistance above this level can then be expected at the .382 Fibonacci Retracement handle priced at $222 followed by the $228 handle.

If the bullish momentum can take price action further higher, more resistance can then be expected at the short term 1.414 Fibonacci Extension (drawn in green) level priced at $253.69 followed by the 1.618 Fibonacci Extension (drawn in green) level priced at $266.11.

In the case that the buyers push price action further higher than even more expected resistance can be located at the 1.414 and 1.618 Fibonacci Extension levels (drawn in blue) priced at 4276 and $288 respectively.

The RSI momentum indicator has moved into oversold conditions on the 4-Hr timeframe. The RSI does not tend to stay on oversold conditions for very long and this could be a sign that the bulls have an opportunity to step in and push the market further higher.

Summary
Ethereum Price Analysis: Struggles Continue for Ethereum, Bulls Still Not Ready to Give Up
Article Name
Ethereum Price Analysis: Struggles Continue for Ethereum, Bulls Still Not Ready to Give Up
Description
Ethereum has seen a steep 9.89% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $209 after suffering a further precipitous 23.68% price drop over the past 30 trading days.
Author
Publisher Name
COINGAPE
Publisher Logo
View comments
Yaz Sheikh 39 Articles

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]