Under $500? Ether Price Seeks Floor After Decline
The 40 percent month-on-month decline of ethereum’s ether cryptocurrency has pushed the long-term cost floor down to $300, the technical graphs indicate.
Under $500? Ether Price Seeks Floor After 40% Decline
Stepping back, ether’s sharp reversal from the Feb. 6 low of $555 (prices as per Coinbase) and the rally to close $1,000 in the subsequent days meant that the cryptocurrency had set a solid cost floor below $600. That looks to have been pushed.
- The cost floor looks to get fallen to $300.
- That said, oversold conditions at the near-term can help ETH shield the March 18 low of $450.
- Merely a convincing move above the head-and-shoulders neckline resistance (former service seen at $661) would abort the bearish perspective.
- A move above $982 will signal that a long-run bearish-to-bullish fashion shift.
Throughout that process, the cryptocurrency also witnessed a head-and-shoulders reversal on March 14 – indicating the rally from the December 2016 low of $5.81 has ended and the bears have recovered control. Additionally, a 50-day MA and the 100-day MA bearish crossover was supported on March 15.
Disclaimer: This article should not be accepted as, and isn’t intended to provide, investment advice. Please do your own thorough investigation before investing in any cryptocurrency.
As of now, the world’s second largest cryptocurrency by market capitalization is changing hands at $534, as per CoinMarketCap.
- The head-and-shoulders breakdown has opened the gates to get a drop to BTC 0.045 (78.6 per cent Fibonacci retracement).
- In the short-term, oversold conditions could yield a minor corrective rally to the neckline resistance, currently observed approximately BTC 0.072.
- A longterm bullish reversal is seen just above BTC 0.0895 (Feb. 26 large).
Therefore, ETH will probably find approval below $546 (61.8 per cent Fibonacci retracement of December 2016 to January 2018 rally) and expand the drop to $300 (78.6 percent Fibonacci retracement) over the next couple of months.
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Ether picture via Shutterstock
According to the graph above, ETH left lower drops across the key descending trendline, since the rally from Feb. 6 lows conducted out of steam and sellers took over following the cryptocurrency dropped under its own 100-day moving average (MA) on March 6.