$ETH prices have fallen, on the back of Bitcoin’s bearish price action on the day. This is piece presents a scan of how the market may fare.
Bitcoin has tanked, slightly, since our last market report, summarily taking the rest of the digital asset markets with it – those it is correlated with, that is. At the time of writing, priced at the circa- $33,8k price level, after having fallen as low as $33,016, we scan the Ethereum ($ETH) charts, to see how they’ve fared.
The second-largest digital asset, by market capitalization, is – at time of writing – priced at $2,247 after rebounding from a low of $2,201 (according to price action taken from Huobi, and streamed through TradingView,) this marks a 9.5% drop from the daily open of $2,432, with the daily high (as it currently stands,) at $2,457. Today’s candle engulfs yesterday’s Doji, which should spell trouble, but the wick attempted the resistance level of $2,550, indicating that bearish momentum may be slowing.
The $ETH market may still see a further price decline, as today’s candle also breached the support level of $2,300. Price action has broken below a downward-facing trend channel, which may still turn bullish. Except some turbulence, however.
Following a 73 day fall, which saw the price of Ethereum drop about 52% of its weight, from an All-Time-High price of $4,868 to $2,298. Vitalk Buterin’s $ETH recovered 11% of its value in the past day, wicking to $2,550 before closing the day at the same price level as today’s open.
With prices currently testing the $2,300 support level, things could still go awry for the $ETH markets. A look at the Stochastic RSI indicates a bullish divergence though, indicating that the bulls are beginning to stage a charge on the market. So if there is a further drop in $ETH prices, it shouldn’t fall too far.
With $1,800 as the next possible support level, though unlikely, things may soon be looking to turn around. The MACD still offers an unclear picture of things to come, as the MACD’s Moving Averages are still looking bearish, with the fast line diverging well below the slow line. Momentum looks to be getting ready to turn around, however.
The Ichimoku Cloud’s Chikou Span is running lower lows, which says a further drop may truly be on the cards. The Tenkan span, at present, has begun to run flat, while the Kijun Sen is still pointed downwards. Kijun may still run downward to meet Tenkan, or flatten as well. Things still seem rather undecided, as both lines still may turn downwards, or flatten – presenting a consolidatory term.
Senkou span A is still below Senkou B, though Span A has begun to run flat, with Kumo awash in red. Should a bullish go truly be on the cards, then a leap beyond the upper $4k price level should buoy Ethereum’s price to about $6k, at the very least, to a decent $10k if the run is sustained? A price drop below $1,8k – though seemingly unlikely – may still occur, however.