Although Ether (ETH) was looking yesterday as if it may find some buyers, the ETH/BTC pairing is today continuing its interminable slide down, while the USD price is also taking a tumble down to strong support.
Looking at the 4-hour ETH/BTC chart, we see a fairly dire picture of capitulation. As covered in recent days, Ether on this chart recently fell to lows not seen since 2017. And at this juncture, we cannot say that support is being found yet – a sort of negative price discovery.
The RSI is trending lower on price troughs, here. Although there was yesterday a strong defense of the blue support band (from a 2017 support zone), there has been little follow up, and little buy volume to support the initial strength. True, the histogram is trending up at time of writing, and there is a bull divergence visible on this indicator – it may suggest some digree of recovery soon.
But moving closer, to the 2-hour, we see a bit more optimism. Although volume is still pathetic, signs of strength are appearing on these low timeframe (LTF) indicators.
A bull divergence is forming between price and RSI on this chart, as well as on the histogram. If a bounce does come, to begin carving in a seat for longer term support – potentially in this blue band – the first resistance to test will probably be the historically notable price of ₿0.0218 (see here for explanation of this significance).
Moving to the ETH/USD, we see an equal amount of carnage on the charts. After first losing $300, then $270, then the $230 ranges, Ether will now have to prove its presence above $200 – at most a 40% drop from local highs.
This blue band of support around $200 is important support from 2018, preceding Ether’s final capitulation of the bear market. It is hard to imagine this support giving way. One saving grace of this chart is perhaps the low-ish sell volume considering such a drop.
There are no two ways about it: Ethereum – speaking of price only – is in a bad way. ETH/BTC must entice buyers who are probably mostly shellshocked by the break of an extremely robust support zone – now turned resistance.
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