Ethereum went through a lot of squeezes in late February and closed bearish. The price continued to drop this month and has lost almost 7% in the last 72 hours of trading.
By this time last week, Ethereum saw a recovery at $1,560 and pushed higher to test January’s resistance of $1,678 on Thursday. It saw a rejection there and sold off heavily yesterday.
This sell-off brought the price back to the last week’s recovery level and continued to consolidate around this support level up till now. As it looks primed to tap more lows, it would have to crack down the holding support level to scale through.
The price action appears a bit calm today due to low selling volume. We can expect more bearish actions to occur in the coming days. But if the current trading level continues to pose threat to the bears, Ethereum may look for a retest at $1.6k to initiate another drawdown.
Meanwhile, there’s hope for a rebound on the white ascending trend line forming since last November. If the trend line fails to produce a rebound, the asset will keep losing momentum.
The current market condition indicates that the bearish action is just starting, with more pressure lurking around the corner. The price has been down by 3% in the past 23 hours.
Ethereum Key Level To Watch
While anticipating a crackdown, the potential support to pay attention to is $1,473, followed by $1,403, which sits on the trend line. A slight break below this line could slip the price to the $1,350 support level. The $1,250 level is the next support to watch if the price dips further.
For now, the $1,678 level is the closest resistance to consider in case of an increase. The future resistance levels to watch out for are $1,788 and $1,900.
Key Resistance Levels: $1,678, $1,788, $1,900
Key Support Levels: $1,473, $1,403, $1,350
- Spot Price: $1,561
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: melpomen/123RF // Image Effects by Colorcinch
