43 minutes ago | Yaz Sheikh
| ⠀Ethereum price: | $144,50 |
|---|---|
| ⠀Key ETH resistance levels: | $150, $158 ,$165, $178, $185, $190 |
| ⠀Key ETH support levels: | $144.16, $140, $133.50, $140, $125 |
*Price at the time of writing
Ethereum has seen a sharp 17% price decline over this past week as the cryptocurrency collapsed beneath the $150 level to reach where it currently trades at around $146.35.
Ethereum has been dropping heavily and it is largely due to the recent capitulation in Bitcoin which saw the number one cryptocurrency dropping by almost 13% over the past week. Nevertheless, Ethereum is starting to look like it might be on a road to recovery as a rebound is starting to take shape.
Ethereum remains the second-largest cryptocurrency with a total market cap value of $15.90 billion.
How to buy Ethereum on Binance
Ethereum price analysis
What has been going on?
Since our last Ethereum analysis, we can see that during mid-November, Ethereum penetrated beneath the short term triangle that it was previously trading within after being unable to break above the 100-day EMA. After breaking below the triangle, the cryptocurrency continued to drop further lower, falling beneath strong support at $165, $158, and $150.
We can see that Ethereum fell further lower into the support provided by the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $133.50. When Ethereum reached this level of support, the market rebounded and started to attempt a move higher.
Ethereum price short-term prediction: Neutral/Bearish
Realistically, Ethereum remains bearish, but we would need to see ETH fall and break beneath the support at $133.50 for to truly confirm that lower price levels are in store. As the market does look to be shaping up for a small rebound, we can consider the market as neutral at this moment in time.
If the sellers do continue to push the market lower, we can expect immediate support toward the downside to be located at $144.16, $140, and $133.50. If the bears break beneath the November 2019 low, we can expect further support beneath to be located at $140, $125, $120, and $118.19 (downside 1.618 Fibonacci Extension level).
We do not expect Ethereum to head much lower beneath this, but if it does, support can be found at $110, $108, and $100.
Where is the resistance toward the upside?
Alternatively, if the bulls can continue to drive higher, we can expect immediate higher resistance to be located at $150. Above this, resistance lies at $158 ,$165, $178, and $185 (100-day EMA). Above this, resistance lies at $194 (200-day EMA) and $200.
What are the technical indicators showing?
The RSI has recently reached extreme oversold conditions and has rebounded slightly. If the RSI can continue to rise higher, this will be a sign that the selling momentum is starting to fade, which could potentially result in a rebound.
The real reason why Ethereum may be about to rebound is the fact that the Stochastic RSI has recently produced a bullish crossover signal in extremely oversold territory which is a very strong bullish signal that should help the market climb further higher (so long as BTC does not capitulate again).
