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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Ethereum Price Dives 20%: ETH/BTC Breakdown The Main Driver

Aayush Jindal
Aayush Jindal
1 year ago
2 mins read
technical analysis ethereum

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  • ETH price declined heavily below key supports against the US Dollar and bitcoin.
  • The price broke the key $260, $230 and $222 support levels to register 20% losses.
  • There was a break below a short term declining channel with support near $227 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is heading towards the $200 support area, where the bulls may take a stand.

Ethereum price fell significantly below $250 and 0.0250 versus the US Dollar and bitcoin respectively. ETH price remains at a risk of more losses if it breaks $200.

Ethereum Price Analysis

In the past three sessions, there was a massive decline in bitcoin, Ethereum, ripple and other major altcoins against the US Dollar. ETH/USD started a solid drop after it broke the key $275 and $260 support levels. The price declined more than 20% and even broke the $230 support area. Moreover, the price broke the $222 support and settled well below the 100 hourly simple moving average. The price traded close to the $210 level and formed a new monthly low at $212.

It is currently trading with a bearish angle, with an initial resistance near the $220 level. The 23.6% Fib retracement level of the recent decline from the $240 high to $212 low is near the $219 level to act as a resistance. Besides, there was a break below a short term declining channel with support near $227 on the hourly chart of ETH/USD. The same channel might act as a resistance near the $225 level.

The 50% Fib retracement level of the recent decline from the $240 high to $212 low is also near $226 to act as a significant resistance. To start a decent recovery, the price has to move back above the $230 pivot level. In the mentioned case, it could even recover towards the $240 level.

Conversely, if there is no upside recovery above $220 or $225, the price could extend losses. An initial support is near the $212 low, below which the price is likely to test the $200 support area. The bulls are likely to appear near the $200 level and defend more losses.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price is under a lot of pressure vs the US Dollar and bitcoin. The main support is near the $200 level. If the bulls fail to defend the $200 support, there are chances of more losses in the near term.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now near the extreme oversold readings.

Major Support Level – $200

Major Resistance Level – $225

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Aayush Jindal
Aayush Jindal

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

Read more

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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