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  • ETH/USD sits marginally above $200 after a strong collapse.
  • The downside is the path of least resistance.

Ethereum, the second largest coin by market value, hit the lowest level since September 18 at $195 amid global cryptocurrency plunge that wiped out over $15B of market’s value. ETH/USD is changing hands at $201.57, down nearly 10% in recent 24 hours. Ethereum’s current market value is $21.1B, while the average daily trading volume is registered at $1.7B.

What’s going on

Ethereum has been following the global cryptocurrency trend as there are no ETH-specific triggers that might have caused the decline. A combination of speculative and technical factors amid a flow of negative reports and concerns voiced by IMF and World Bank earlier this week might have spoiled the market sentimentsб turning the balance to the bearish side.

Ethereum’s technical picture

ETH/USD needs to return above $220 handle to get a chance for an extended recovery towards $227 with a host of strong technical indicators clustered on approach, including 61.8% Fibo retracement daily, 4-hour high, SMA10 daily and SMA10 4-hour.

On the downside, a sustainable movement below $200 will open up the way towards Asian low of $195.00 with very little in terms of supports below that level. Basically, the downside is considered as the way of least resistance now.

ETH/USD, 1-hour chart