Breaking down crucial multi-month support last week, Ethereum saw a heavy drop and crashed back to its yearly low. However, it recovered slightly earlier today following a sudden rejection.
A week ago, Ethereum traded as high as $3,400 after making a short bounce from a reestablished support of $3,100. The high trading level was rejected and it steadily lost momentum on a daily scale.
Selling pressure intensified and the price broke down throughout the week with a strong close below the $2800 level that has been acting as crucial support for the second-largest asset over the past months of trading.
Things heated up heavily today and the price plummeted by another 15% to a low of $2,111, marking the biggest daily sell-off since it resumed bearish a week ago. So far, it has charted a painful 30% loss.
Due to the current high level of supply, the asset now looks extremely bearish on the daily chart. Although, it has recovered a bit from the current low since morning and now trades above $2,200.
But looking at the price action from a technical perspective, the bearish party is not over yet. ETH is still looking for as solid ground. A drop below the $2k level might cause more pain in the market.
ETH’s Key Level To Watch
Source: Tradingview
While ETH holds the $2,100 level as temporal support, the lower price level to consider for more drawdowns is $1,900 and maybe $1,800. If all these support fail to contain pressure, $1,650 would be the next drop level to keep in mind.
Should the price increase again, the $2,391 resistance may pose threat at the bulls. If they push through, we may see more recovery to the $2,614 resistance. Above this level lies the crucial $2,817 support-turned- resistance.
Key Resistance Levels: $2,391, $2,614, $2,817
Key Support Levels: $2,100, $1,900, $1,800
- Spot Price: $2,252
- 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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