- Overarching declines paralyze Ethereum buyers as the price retreats to September 2017 levels.
- Ethereum buyers must pullback above $230 and push for more gains to reclaim the broken support at $250.
Ethereum plunged over 10% yesterday during yet another crypto massacre in 2018. The digital assets had just recovered from the declines that dominated the market last month. Previously Ethereum guarded the support at $250 but the upside remained locked below $300. Prior to the sharp descent to the yesterday’s sharp declines, Ethereum was trading in a range ($280 – $290).
There was a break below the short support areas at $280 and $270. The support that was heavily guarded in August did not see the light of day as the bears tightened their grip. Ethereum declines continued below $230 and went back to trading September 2017 lows. The buyers entered at $212.1 and a slight pullback followed.
The short-term trendline resistance posed significant pressure on the bullish trend. Ethereum is currently trading above the trendline but the gains are limited by the 15-minutes 50 simple moving average at $227.38. A second resistance zone is highlighted by the 100SMA on the same chart.
Looking at the chart, Ethereum buyers must pullback above $230 and push for more gains to reclaim the broken support at $250. The support at $220 must be protected because Ethereum is still in danger of incurring losses towards $200. The stochastic is ranging slightly below the 50 mark, signaling that the trend is in the bulls favor, at least for now.
ETH/USD 15′ chart
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