Ethereum (ETH) Price Technical Analysis
Ethereum (ETH) price closed the week trading on Friday in a bearish trend. The weekend trading on Saturday has seen the price slide to early December 2017 lows. The cryptocurrency is down 8% in the last 24 hours after opening the trading session at $600. The selling pressure in the market is increasing as ETH/USD breaks several support levels.
Currently, Ethereum price is trading below both the short-term 100 simple moving average trendlines and the longer term 200 simple moving average. The moving averages are sloping downwards to indicate that the bearish trendline is strengthening and Ethereum could experience further declines. Consequently, the trendlines crisscross twice at $606 mark and at $604, which shows that the price will consolidate upwards toward the $600 level when the bulls take charge of the market.
During the decent, ETC/USD broke past several support levels at $600, $585 and $575. The hourly chart shows that Ethereum price did not find support at any the retracement levels. The price is trading below the 23.6% Fib retracement level with the last swing high of $625 and a low of $570. The increasing selling pressure means that traders are using their Ether to buy other coins in the market. The bulls have been walloped by the activities of the sellers.
Ethereum (ETH) must find support at $550 level to prevent further declines. If that fails, the losses could see Ethereum trade close to $500. If this happens then trading below $500 level is within reach and could happen in the next 24 hours. The market has to find a reason why to hold on to the ETC and bulls to increase the buying power to realize appreciable gains in price. In the event of a recovery forming, ETC/USD will encounter resistance at the 38.2% Fib retracement level. The major resistance will be at the $600 level which is also the 50% Fib retracement.
Bitcoin (BTC) Price Technical Analysis
The fluctuating price has been known to affect other coins in the market. The trading in the last one week has had Bitcoin drop to February 2018 lows. The price slump was initiated after the US regulator, the Securities and Exchange Commission said that it will require all the cryptocurrency tokens categorized as securities to be registered. Moreover, Japan regulator also added to the speculation by going hard on cryptocurrency exchanges to the extent of shutting two down.
The weekend trading for Bitcoin is not very different from Ethereum (ETH). Both are recording over 7% drop in price in the last 24 hours. BTC/USD was recovering towards the end of the week on Thursday and the morning sessions on Friday. However, the bears intensified their control and Bitcoin embarked on a downside roll. The price broke past key support areas at $8,200, $8,000, $7,850.
Bitcoin (BTC) price is currently exchanging hands at $7,770 in a highly negative market. The price has gone from trading above $8,200 to last week’s lows. The currency seemed to have found support at the 23.6% Fib retracement level, the bulls were overwhelmed and the price continued to decline. The Bitcoin will have to find a support area to end the downside momentum. The immediate support level for BTC/USD is at $7,800. If the bulls are not strong enough to hold ground at this level the price will continue descending and could test the major support level at $7,500.
The following few days will be very vital for the price of Bitcoin (BTC). The currency will have to find a strong support area to embark on a recovery. The ride is a bumpy one as the uncertainty in the market increases the speculation.