Ethereum (ETH) price prediction: no escape from sell-off - Confluence Detector
|- Ethereum lost over 20% of its value from the recent peak.
- Downside movement seems more likely.
Ethereum, now the second largest coin with a market value of $13.4B is trading at $128.90 with a mild bearish bias and expanding volatility. The coin lost over 20% from the recent peak reached at $164.74 amid growing uncertainty ahead of Constantinople upgrade and general sell-off on the cryptocurrency market. Traders do have a reason to be nervous. There is less than a week until the event, but only 15% of full nodes upgraded the software.
Looking technically, ETH/USD is exposed to further losses as the way to the South looks like the path of least resistance at this stage. The first meaningful support below the current level is created by the lower border of the 1-hour Bollinger band at $125.70. Once it is broken, there is little to stop the price from going all the way down to $113.00 handle strengthened by 61.8% Fibonacci retracement level (1-month), and 161.8% Fibonacci (1-week). If it is cleared, there is a good chance we will see ETH/USD at $100.00 sooner rather than later.
On the upside, stiff resistance is created by a confluence of strong technical indicators, including the previous week's low at $130.70, 38.2% Fibo retracement (1-month) and 23/6% Fibo retracement (1-day).
Once it is out of the way, the recovery may be extended towards psychological 135.00 with 38/2% Fibo retracement (1-day) located on approach. It is followed by a stronger resistance area at $140.50-$140.80, created by SMA50 1-hour and SMA100 4-hour. It separates us from the ultimate bullish goal at $150.00.
ETH/USD, 1D
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.