Following a steady drop from March’s high, ETH lost a key support level and plunged to a two-year low. Looking at the drops, it is currently the biggest loser among the top 4 altcoins with a 20% drop since yesterday.
Ethereum has continued to paint serious bearish scenarios every week following a back-to-back deduction since the start of the year. Its bearish market structure has broadened and is now looking extremely overstretched on the daily scale.
Signalling a long-term bearish move this month, it broke through a key support level and tested a two-year low of $1,411 during the London session. This low has been rejected to where it is priced at $1,496.
The current trading level marks the key retest zone anticipated in the past months. A further recovery above it could bring relief in the market. If not, we may see more drops when the supply level increases.
Looking at the daily price action, the bears are strongly in control from a technical perspective. A drop below the current low could set the stage for a bigger fall, positioning the market in a more bearish condition.
While the bulls are still in disbelief, they will likely suffer more losses when selling pressure increases. Currently, there are no signs of buying. Even though that happens, ETH must climb back above $3k before we can consider a bullish move.
ETH’s Key Level To Watch
Source: Tradingview
Below the current daily $1,411 low lies the key $1,300 level. Losing all these price level could drag the price to $1,200 before locating support.
There’s nothing much to expect towards the upside as there’s no signs of an increase. The $1,614, $1,755 and $1,957 resistance are higher levels to watch in case of a buy.
Key Resistance Levels: $1,614, $1,755, $1,957
Key Support Levels: $1,411, $1,300, $1,200
- Spot Price: $1,496
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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