Ethereum has turned into an unattended dumpster fire. Let’s take a look at the Ethereum price analysis and see what it will take to turn the price around.
2018 has been a rough year for Ethereum price 00 and at the moment it doesn’t look like the situation will improve. Of the top 5 cryptocurrencies, ETH price disintegration has been nothing short of harrowing and with the ICO market being declared dead by a growing number of analysts.
Meanwhile, the SEC in constant pursuit of what it deems to be unregistered securities sales and illegal marketing has put a ton of pressure keeping it from rebounding from its current lows.
Additional pressure is also coming from a record high number of shorts (400,000) betting against an Ether recovery and this seems to be pinning ETH price below $95. A break above $95 – $100 could cause some shorts to cover and the price could extend to $115 to $125.
However, it seems a strong Bitcoin led recovery is the only catalyst that would set this sort of action into motion.
Here is the ETH/USD longs chart.
ETH had been trading in a tightening range of $83 to $103 but a decline in volume and pattern of lower highs hinted that ETH price would break down over the short-term.
ETH under $85 is a problem and below $83 – $80 could be catastrophic. The pattern of lower highs remains and ETH’s oversold bounces on the Stoch and RSI are diminishing in the amount of lost ground reclaimed.
Longs have 300,000 contracts open and a drop below $80 could accelerate ETH losses and the considerable support gap below $80 could lead to ETH price dropping to $60, if not to $41.
Ethereum price dropped supports at $89, $87.60, $85.90. Now $83 – $80 appears to be the last support before a steep fall. Ambitious traders should either wait patiently for a bullish pattern to present itself or attempt to catch and oversold bounce if ETH drops below $83.
But setting a tight stop loss would be wise in order to protect against the possibility of a steep decline below $80.
Where do you think Ethereum price will go over the short-term? Share your thoughts in the comments below!
Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase and Bitfinex.