Last month saw Ethereum through a sudden nosedive after marking a year high around $2.1k. The price is currently under the bears’ radar. Volatility has been low for some days now, but a big expansion is much ahead.
Ethereum is still positioned in a downward range after cutting over $300 of its price in three weeks. It has remained a bit calm since the start of this week but the meltdown doesn’t appear finished yet.
It could paint more reds in the next few days. Although the $1.8k level has provided solid support since the price started to fall. This support level may continue to threaten the bears until they surpass it.
A recovery from that support has brought a retest at $1,950 as resistance due to a heavy breakdown in the past weeks. It has rejected the resistance level today and now charging to claim more lows.
An expansion below the mentioned support could drive the price quickly to the lower boundary of the wedge forming for the past months. From there, we can expect a rebound for a positive rally.
Failure to bounce off the lower boundary could trigger a breakdown to March’s low. It has posted a lot of gains in the past four months, but the price is still down by 35% yearly.
ETH’s Key Level To Watch
The $1.8 support level has remained an obstacle for ETH during this downfall. If it surpasses that level in the next drawdown, the lower levels to watch for drops are $1,788.4, $1,7229 and $1,678.9. The $1,590 support is sited at the wedge’s lower boundary.
Inversely, the immediate resistance level to watch above $1.9k is $1,948. A further increase could facilitate more recovery to $2,030 and $2,160.
Key Resistance Levels: $1,948, $2,030, $2,160
Key Support Levels: $1,788.4, $1,722.9, $1,678.9
- Spot Price: $1,889
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: nexusplexus/123RF // Image Effects by Colorcinch
