Again, the fall: what happened this week for Ethereum

The Ethereum once again in the horizontal channel. The cryptocurrency began the sideways movement almost immediately after a plum this week. In the short term there is a small probability of testing the resistance zone 192-194 dollars. Unfortunately, bullrun is not, the stock market suffered serious damage due to a recent fall.

The General situation looks like this:

  • the asset generates a good support level just above $ 165;
  • in the 4 hours chart the main obstacle to the growth of the asset supports the local downtrend resistance at line 193 dollars;
  • soon the trade the pair may roll back up to 188, 192 or 194 dollars.

At the moment Ethereum is trading at $ 175. In the past 24 hours, the cryptocurrency rose 0.94 percent.

Technical analysis

Recall that due to the rapid fall of Bitcoin in this environment almost all altcoins fell below their key support levels. The Ethereum decreased from the local maximum (223 dollars) to an annual minimum in the area of $ 165. The price action was so strong that it did not even stop support levels at the lines 212, 200, 196 and $ 180.

Image source — NewsBTC

After the dump recoil, during which the asset rose to $ 179, but could not break through the local resistance. Note that at this level as time passes the 0.236 Fibonacci level and the beginning of the last discharge.

It seems that in the near future Ethereum will continue to consolidate near the $ 165 level. If the stock market will no longer experience the same shock of drops, in the short term, bitcoin may go above $ 179. For the formation of a local uptrend it also needs to overcome the downtrend on 4-hour chart.

At the moment the key resistance on a scale of 4-hour chart is the level of $ 195. Here is a local sloping moving average resistance and the 100 SMA. When overcoming this level we can talk about growth, while trading Ethereum makes no sense.


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