Ethereum (ETH) has today hit a new 19-month low after printing $96.23 (Bitfinex data). After hitting the quoted level this morning, the price rotated back higher before returning to test the same level again.
Currently, we trade just below the $98 handle. A close below the psychologically important $100 level will bring even more control to the bears.
The fresh leg lower brings more uncertainty for the second biggest cryptocurrency by market capitalization. All other coins from the Top 10 list are also in red, except for Bitcoin SV (BSV). Bitcoin (BTC) has also printed the new lows, although it looks a tad more stable than Ethereum as it ticked only a couple of points below the last week’s low. Ethereum, on the other side, moved more than $6 dollars below the last week’s low of $102.20.
Looking at the daily chart (Graph 1), the downside spiral has continued. After the breach of the key horizontal support (the upper red line) around the $170 handle, ETH had been moving to the next important level of horizontal support, which sits around the $78 mark (the lower red line).
Graph 1. Ethereum (ETHUSD) daily chart
In case the price continues to move lower, the horizontal support should get an additional boost from the 161.8% Fibonacci extension support, which is located just below the $60 handle. Graph 2 also suggests that the bearish trend may continue in the coming days and weeks.
Graph 2. Ethereum (ETHUSD) hourly chart
The price has been trapped within a descending wedge before breaching it for the first time yesterday. Although it ultimately moved back to the wedge, today’s breach looks more sustainable as it closed below the wedge support multiple times on the hourly chart. The next short-term support is the 127.2% Fibonacci extension support sitting at $95.34.
A move to the low of $96.23 means that Ethereum has now lost more than 93% of its value, since making its January high of $1.424. It currently has the market capitalization of $10 billion.Leave a comment