Second floor: Ethereum could fall even lower by the end of the week

The Ethereum once again faced with strong selling pressure, the asset even for a time fell below support zone of $ 120. We will remind, earlier we already wrote that the best trading strategy for the stock market these days will be short. Yet reliable indicators of reversal of the bearish trend and it is unlikely they will appear in the near future.

The General situation looks like this:

  • The Ethereum could not break through the resistance area $ 136 on the wave of previous rollback;
  • on the 1-hour chart has formed another descending trend;
  • trade pair has all the chances of a dip below $ 120.

At the moment Ethereum is trading around $ 120. In the past 24 hours, the cryptocurrency fell by 8 percent. Capitalization is at a level 12,48 billion dollars, while daily trading volume exceeded 1.98 billion.

Technical analysis

Yesterday after a sharp fall of the stock market price of the asset went in the undertow, rebounding from support at line 122 of dollars. Coin rises above $ 130, but was unable to overcome several key obstacles in its path. The Ethereum also managed for a short time to get over the 0.5 Fibonacci level, is laid during unloading from 145 to 121 USD.

But the 0.618 line of the Fibo-be buyers failed to pass. Due to the recent price movement on the 1 hour chart of bitcoin has formed another bearish trendlayn, for breaking of which need to grow above $ 127.

For a short time the Ethereum even fell below $ 120, that shows the weakness of the nearest support. Most likely, the asset will continue to decline down to $ 90. From the point of view of fundamental factors, this scenario points to a fall in the profitability of mining ETH and large stocks of coins that ICO still unable to merge in the coming months.

Image source — NewsBTC

Technical indicators 1-hour chart indicate sale. MACD is in a bearish zone, and RSI is still going down. The safest strategy remains shorting.

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