Ethereum Stops At Channel Support
Ethereum (ETH/USD) took a significant blow last week as it breached an important support around the $153 mark. As a result, today’s low of $131.35 marks the new 8-month low for the world’s second biggest digital coin.
A break of the horizontal support above the $150 mark has pushed Ethereum to the supporting trend line of the descending channel (chart below). For the third time in the last three months, the bulls have used channel’s supporting trend line to push the price higher. In addition, 78.6% Fibonacci retracement zone is located near the channel's supporting trend line, thus creating a strong support block.
Where next? A potential break of the confluence of support, located between $130 and $140, will pave the way for a bigger retreat lower, toward next support zones around the $100 mark. The 2019 low is still at $99.65 as it continues to act as an important horizontal support near the psychologically-important level of $100.
On the other hand, the price action has slightly recovered today as it tempts to recover last week’s losses. The bulls will have to first break above the previous support, now acting as a resistance, before going for the 100 DMA at $180. The descending channel’s upper trend line comes at $200.
A break of the horizontal support above the $150 mark has pushed Ethereum to the supporting trend line of the descending channel (chart below). For the third time in the last three months, the bulls have used channel’s supporting trend line to push the price higher. In addition, 78.6% Fibonacci retracement zone is located near the channel's supporting trend line, thus creating a strong support block.
Where next? A potential break of the confluence of support, located between $130 and $140, will pave the way for a bigger retreat lower, toward next support zones around the $100 mark. The 2019 low is still at $99.65 as it continues to act as an important horizontal support near the psychologically-important level of $100.
On the other hand, the price action has slightly recovered today as it tempts to recover last week’s losses. The bulls will have to first break above the previous support, now acting as a resistance, before going for the 100 DMA at $180. The descending channel’s upper trend line comes at $200.
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