Breaking: Ethereum erases $4 billion in market capitalization within hours

• Ethereum is currently trading at $337 after plummeting from a high of $376.
• ETH could be aiming to re-test the critical $300 support level.

Ethereum lost more than 10% of its value within the last 12 hours dropping from a $42 billion market capitalization to a current low of $38 billion. 

ETH/USD 4-hour chart

Investors were unsure if Ethereum was forming a bear flag, a technical pattern, and a continuation of an existing downtred or triangle pattern, which could be bullish or bearish. The bear flag formed its flag pole On September 1 and the upwards consolidation period started on September 6 and has clearly broken bearish now but hasnt’ yet broken the low of the pole at $310. 

ETH IOMAP Chart

The IntoTheBlock’s In/Out of the Money Around Price model (IOMAP) shows the next support level to be at $337 followed by $326. However, the biggest support levels are found at $304 and $294 where 861,000 addresses and 927,800 respectively bought ETH . 

The IOMAP seems to indicate that Ethereum is poised to re-test at least the $304 level. On the flip side, the smart-contracts pioneer is not facing a lot of resistance well until $365 but there doesn’t seem to be a lot of bullish momentum to push it to that level. 

A maximum possible target for the bearish outlook would be close to $200 as that’s the length of the flag pole. On the other hand, if bulls can recover, ETH price will be looking to reach $365 where the next most important resistance cluster is located at.