Alongside Bitcoin, Ethereum (ETH) price collapsed to $240 and managed to recover. The second largest cryptocurrency lost over 13% of its value in a matter of minutes without an obvious catalyst.
Ethereum Medium-Term Price Analysis
On May 16, the Ethereum market rose to a high at $280 price level in a recent surge in volatility, however, the bears were resisted and the price made a sharp decline to a low at the price of $240. The downward trend is continuing as the bears broke the 0.236 and 0.382 Fib. retracement levels.
Ethereum price is likely to drop to the $200 price level or 0.786 Fib. retracement level. If that happens, the price will resume its bullish trend at the $200 support level. In the meantime, the Moving Average Convergence Divergence (MACD) line and the signal line are above the zero line, which is an indication of a buy signal.
ETHUSD Short-term Price Analysis
As the 1-hour chart shows, ETHUSD was in a bearish trend zone after the bulls met resistance at the $278 resistance level. As a result, ETH price fell to a low at $240. On May 17, the price is ranging below the 12-day and the 26-day EMAs, which is an indication that price is likely to decline. The MACD line and signal line are below the zero line which also indicates a sell signal. At the of writing, Ethereum is trading at $228.
- Resistance Levels: $250, $260, $270
- Support Levels: $240, $230, $220
Disclaimer
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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