Market Flash: Ethereum Breaches Key Support Level, Price Prints New Yearly Low

Market Flash: Ethereum Breaches Key Support Level, Price Prints New Yearly Low

The bloodbath continues. After taking a brief pause, the entire cryptocurrency market has continued its slump. For the Ethereum (ETH) and many other top currencies, today’s dip in the prices has resulted in new yearly lows.

Bitcoin is down all the way to $5,028, a decrease of the almost 10% since this morning. Looking at Top 10 coins, only Ripple (XRP) is showing signs of life today. After Cardano (ADA), which is down by 14% on the day, Ethereum is the second worst-performing currency in the Top 10 coins by market capitalization.

Looking at the weekly chart (Graph 1), the Ethereum had been creating lower highs since the April swing high, as the price continues to create the new lows. Today’s low of $153.52 is the lowest market price since July ‘18. The current market price is way below the 100 WMA and the 127.2% Fibonacci extension level, both important support levels for the second biggest coin.

Graph 1. Ethereum (ETHUSD) weekly chart

The 4H chart below (Graph 2) offers little hope to bulls as well as the outlook looks bleach. Today, the price has penetrated through the key horizontal support around the $167 handle (the upper purple line). Any close below this level will create a basis for more losses in ETHUSD, as the bears assume full control of the situation.

Graph 2. Ethereum (ETHUSD) 4H chart

In case the price continues to dip lower, the next support is located just below the $144 mark, which is 127.2% Fibonacci extension of the previous correction higher. Just below around the $136 mark, lies another support in the form on horizontal low from the last year which should provide a certain amount of support for bulls to try and defend that level, while the bears may use this level to pause before continuing to push the price lower.

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