Another Look At The Ethereum Chart & Price
Cryptocurrencies today had a rough day. Most of the market was down today and that includes Ethereum (ETH) which, as of this writing, is trading at 195.58, a loss of over 10% from the previous day. To add to the fire, selling volume was strong today indicating the bears had full control of the day. It is no surprise though since this currency has been in a strong downtrend. However, all hope may not be lost. Let’s look.
The above chart shows a clear picture of the current downtrend that has taken Ethereum for a ride. The recent low is around 167 (blue line). We had a strong bounce off that low starting on the 12th. I was looking for 155 – 165, but it never hit. I mentioned before, the coin needed to take back control of the 10 day ema. It did not. It did rise above it, but could not hold or pass the 20 day ema (red line). That area was resistance after the recent strong selloff. This is not a good sign. A strong move would have tested the 260’s area, but we are not there.
What traders should look for is a move below 190 which means we may retest the 167 low. I would not be surprised if we hit 150s. Entering there for a bounce may work with stops under 150 if the coin looks for new support. If 190 holds we may see a retest of the 230’s and hopefully a move to the 260’s. Volume is key here especially since we’ve seen such strong selling volume recently. Could this be forming a double bottom or is this just stair stepping it’s way lower? Time will tell, but keep in mind RSI is not oversold, so there is room for more downside movement.