Ethereum‘s price decreased by 3% today as it lost a key trading level amid the ongoing market meltdown. The bears have resumed pressure again to claim more lows.
Following past days of recovery that brought Ethereum to the test of $1,870 this week, the second-largest crypto by market cap registered about 6% gains during that period while trading volatility was low with choppy price actions.
However, the last 24 hours of trading came with a significant slice to a weekly low, losing the key $1,800 trading level on a single red candle. This sudden surge reflected a huge supply release.
Now that the sellers are back in action, Ethereum may find it difficult to reclaim that key level. The current setup is likely to cause a major drawdown any time from now. The upcoming days could get uglier with the latest breakdown.
On the other hand, Ethereum’s price is moving close to the wedge’s lower boundary – a solid support line where a major reversal is expected to take place. Around that boundary, we can expect a massive rally to the upper boundary.
The only thing to stop this potential reversal is a wedge breakdown. Should that come into play, the price may revisit last year’s low before it finds a base support for recovery.
ETH’s Key Level To Watch
In the latest drops, the potential support to the current trading level is $1,788.4. The support to watch below it is $1,722.9 before slipping to $1,678.9, where a major bounce is expected to occur.
If the coin climbs back above the $1,800 level, the potential resistance to watch out for is $1,883. A further push could send the price to $1,948 and $2,030 without any hassle.
Key Resistance Levels: $1,883, $1,948, $2,030
Key Support Levels: $1,788.4, $1,722.9, $1,678.9
- Spot Price: $1,805
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Image Source: niphonsubsri/123RF // Image Effects by Colorcinch
