Ethereum Price Key Highlights
- Ethereum price completed the head and shoulders formation on its 1-hour time frame and successfully broke below the neckline, indicating that bears are in play.
- A small pullback to the broken neckline and trend line support occurred yesterday, before ethereum price regained downside momentum and went on to break below the previous day lows.
Ethereum price might have its sights set on the yearly lows around 0.00150BTC if the bearish momentum keeps up.
Bitcoin Leading the Charge
The consecutive rallies in bitcoin price have been mostly responsible for the recent drop, potentially taking ethereum price to new record lows. The 100 SMA just made a downward crossover from the longer-term 200 SMA, indicating that bearish momentum is picking up.
For now, ethereum price is stalling around an area of interest near the 0.00200BTC area, which has served as a resistance level in the past. A break below this level could put price on track to testing the next lows. A break below this long-term floor could even lead to a move to the next psychological support at 0.00100BTC.
Stochastic is staring to make its way out of the oversold zone, hinting that buyers could step in. Similarly, RSI is slowly heading up, which suggests a potential rally or another quick pullback.
In addition, a slight bullish divergence could be seen, with the oscillators forming higher lows since November 3 and price making lower lows since then. This adds confirmation that the selloff might be overdone and that a bounce is possible.
In terms of potential pullback points, the recent spike at 0.00285BTC might hold as intraday resistance. A higher correction could last until the 100 SMA at 0.00290BTC or the 200 SMA at 0.00300BTC, although no signs of a retracement are showing up for now.
Intraday support level – 0.00200BTC
Intraday resistance level – 0.00285BTC
- SMA 100, SMA 200
- Stochastic (8, 3, 3)
- RSI (14)
Charts from TradingView