- Etheruem saw a whopping 30% price decline today as it drops into $138.
- This price decline is largely caused by the market sell-off seen in Bitcoin.
A risk-on situation has developed for Bitcoin as investors look to take out cash to hold or to put into safe-haven assets. This cryptocurrency wipeout has extended into the altcoin markets and Ethereum is one of the major sufferers as it loses 30% in just one day!
The cryptocurrency tumbled from a high of $195 today to reach as low as $128 before rebound a little. Nevertheless, we can expect this extreme bearish sentiment to continue and ETH is now likely to head toward $100 and perhaps even lower.
Ethereum Price Analysis
ETH/USD – Daily CHART – SHORT TERM
Taking a look at the chart above, we can see that ETH started the day at a high of around $195 before the price plummetted beneath $140. It continued to drop into support as low as $128, provided by a downside 1.618 Fibonacci Extension level, before it started to bounce higher.
Even with this rebound, we can certainly expect Etheruem to continue to drop over the coming days and it is likely to head as low as $100 at some point during the week.
Short term prediction: BEARISH
Ethereum is certainly extremely bearish at this moment in time. If the sellers break back beneath $140, the first level of support lies at $130. This is then followed by support at $128 (downside 1.618 Fib Extension level).
If the selling pressure continues to drive ETH beneath $120, support can then be located at $116, $104 (downside 1.272 Fib Extension) $100, and $92.85 (downside 1.414 Fib Extension). Beneath this, added support is then found at $80 and $76 (downside 1.618 Fib Extension).
Toward the upside, the first level of resistance lies at $150. Above this, resistance lies at $160, $180, and $190.
Support: $140, $135, $120, $116, $110, $104, $100, $92.85, $80, $76..
Resistance: $150, $160, $180, $190, $205, $210, $213, $220, $227, $240,$245, $248, $250, $275, $270, $280, $300.