Ethereum price continued dropping throughout Wednesday’s trading sessions recording a day low of $725. After Wednesday’s day low was recorded, ethereum price rose slightly to reach an opening price of $749 on Thursday. So far, ethereum price reached a high of $770 during Thursday’s trading sessions, before dropping down again to $742 at the time of writing of this analysis. The bearish wave that has been evident during the past 72 hours reduced ethereum’s market capital by around 15%.
Will ethereum price continue to fall during the next few days? When can we expect it to rise again?
Heading down to $716.30:
We will examine the 4 hour ETHUSD chart from Bitfinex, while plotting the Williams Alligator inidcator, the 50 period SMA, and the MACD indicator as shown on the below chart. We will plot Fibonacci retracements extending from the low recorded on Feb 7th ($716.30) and the high recorded on Feb 18th ($979). We can note the following:
- The bearish wave has been strong enough to pull ethereum price downwards to breach two important support levels: $816.65, which corresponds to the 61.8% Fibonacci retracement and $778.30, which corresponds to the 76.4% Fibonacci retracement. The next significant support level lies around $716.30 which is the 100% level of the Fibonacci retracement we plotted.
- A “bullish engulfing” candlestick pattern has just been formed on the chart and was followed by a brief upwards price correction attempt that took the price up to $770. However, ethereum price dropped down to $735, less than four hours after the day high was recorded. Apart from the bullish engulfing pattern and this upwards price correction attempt, ethereum price will most probably continue dropping due to the absence of strong support at the current price level ($735-$770).
- Candlesticks are moving further away from the 50 period SMA and the 100 period SMA. This reflects that the bearish wave is still strong. Also, the SMAs of Williams Alligator are exhibiting a bearish alignment, with the blue SMA (jaw) on top, the green SMA (lips) below, and the red SMA (teeth) in between. The Alligator’s mouth is wide open and eating in the bearish direction. This confirms that ethereum price is likely to continue on falling during the next 24 hours.
- The MACD indicator is also conveying another bearish signal. It is in the negative territory and sloping in a downwards direction. Not only is the red signal line above the blue MACD line, but also the gap between both lines is increasing. This reflects the strength of the current bearish wave.
- The most probable scenario is to see ethereum price drop towards $716.30 which can support the market and initiate reversal of the current bearish wave. If this level doesn’t hold support, ETH price can even drop to the next support level around $683.
Ethereum price continued dropping reaching a day low of $735 earlier during Thursday’s trading sessions. Our technical ethereum price analysis predicts that ethereum price will most probably continue dropping near $716.30 before the current bearish wave can be reversed.
Chart from Bitfinex, hosted on Tradingview.com