On March 12, ETH plummeted with tremendous speed and reached a low of $ 89 the following day. It is worth mentioning that ETH has not traded below $ 100 since December 8, 2018. However, it immediately rebounded and is currently trading at $ 122 at the time of writing.
Highlights of ETH price
- ETH is following the descending support line.
- There is support at $ 90.
- There is resistance at $ 160.
- ETH / BTC is trading range at 0.225-0.255 BTC
Trader Nico tweeted the ETH chart showing a 100% increase in the candles two hours earlier. In addition, he warns current market conditions are a double-edged sword, with significant potential for movement in both directions.
100% on the last 2H candle …
Trading in this volatility could be as profitable as killer for your account ..
Stay safe 😉#ETH pic.twitter.com/tuPfKZWasI
– Nico (@CryptoNTez) March 13, 2020
“100% on the last 2 hours candle …
Trading in this volatile situation may be profitable, but it can also kill your account
Keep safe”
Support area
Looking at the weekly ETH chart, there are two main areas of interest: support at $ 100 and resistance at $ 160.
The price has reached the support zone in the form of long low wicks and rising up. However, it has not yet reached the resistance area.
Additionally, ETH may have been following the descending support line since July 10, coinciding with the support zone of $ 100.
The current uptrend shows that the recovery is likely to lead to more decline than to start a new uptrend. The price has reached the Fib down 0.5 level of the whole move down and immediately drop below this level.
In addition, even if the $ 160 zone breakout, the upside potential is still limited as the 200-day MA at $ 175 is likely to provide additional resistance.
Therefore, although prices will trade between $ 100 and $ 160, there is no possibility of a breakout from this area.
ETH / BTC
On the other hand, the ETH / BTC pair has reached the support zone of 0.225 BTC and then rebounded strongly, confirming the 0.255 BTC zone is resistance and left a long upper shadow.
Similar to the ETH / USD pair, the price is expected to trade in the range of 0.225-0.255 BTC.
In summary, ETH has reached the area of significant support and up. It is possible that No.2 crypto will continue to trade in the range of $ 100-160. ETH / BTC is expected to perform similarly in the range between $ 0.225-0.255.
ETH follows Bitcoin closely as investors wait anxiously for a trend-defining move
As mentioned above, ETH has shown a more positive signal after falling from a high of $ 200 to a low of $ 90 but it is expected to trade sideways in the $ 140 area in the coming days.
Investors interested in deciphering the short-term trend of ETH need to watch closely the fact that the price is consolidating just below the critical resistance at around $ 135, which is a bullish sign.
It is also important to note that this level that once played a supporting role has now turned to resistance – prompting the case of ETH bears.
The weekly close candle is very important to the upcoming fate of ETH
Analyst and trader Nik Patel explained in a recent tweet that if the bulls cannot activate the ETH price before closing daily and weekly for the next few hours, it may be a terrible sign, as it will look the bottom is lower than the USD.
I think one of the most interesting things to look at further – if tonight closes as it currently stands – will be the failure of $ ETH (and a number of other alts) to print a lower-low against USD where $ BTC would clearly have broken market structure.
– Nik Patel (@cointradernik) March 15, 2020
"I think one of the most interesting things to consider further is that if the closing price tonight is not changed compared to the present, it is the failure of ETH (and some other coins) due to the lower level formation. with USD while BTC clearly broke the market structure. "
The upcoming hours will give ETH investors more insight on trends in the coming weeks and months.
You can see the price of ETH here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Thuy Trang
Bitcoin Magazine
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